Study On Risk Management Strategy Of Retail Loans In BOC Gansu Branch

With the increase of consuming capacity and awareness of habitants since1990, all countries have made great progress on retail loans, especially the types of loans are various. However, the commercial banks in China always focus on developing the wholesale business and the competitive ability in retail loans is poor and lack of experience. In addition, due to the limitation of funding capacity, running system, technique and administration, there are existing many problems in risk management of retail loans. The subprime crisis in USA reminds that commercial banks should be concerned about the risk management of retail loans. Therefore it is quite necessary to discuss about the issues of risk management of retail loans in commercial banks.The writer has been responsible for retail loan in Bank of China, Gansu Branch. She firstly reviews the literature on risk management of retail loans in commercial banks. Secondly she sorts out the types and reasons of risk management of retail loans in commercial banks. Thirdly she takes the example of Gansu Branch and makes a detailed analysis of its current situation, existing problems and reasons. Finally the author provides suggestions on improving the risk management of retail loans through utilizing three-stage strategy, namely the pre-loaning, while-loaning and post-loaning.