Research On Supervision System Of City Commercial Banks’ Credit Risk

City Commercial Banks of China, also known as local commercial banks, are a form of financial institution which invested by local government funds,private enterprises and the local liquidity investment, and it is based on the former urban credit cooperatives. Since the year1995, there have been founded more than one hundred city commercial banks, even some of them have been successfully listed. The rise and development of city commercial banks to some extent, improve the level of banking operations and the quality of operations, and also they provide more choices for the people and many small enterprises, what’s more, they increased impetus to the local economic development in China. Especially after entering the twenty-first century, with the rapid development of the financial industry, city commercial banks have been developed rapidly by provide efficient and effective service and variety of business. They do not only provide enough bankroll for the local society, but also satisfied the citizens’demand for banking increase. Although the city commercial banks have made a considerable development in recent years, there still have many problems because of its historical legacy and the influence of external environment. The problems are related to the future development of the city commercial banks, and it also can make a significant impact on the economic development of a city. The most important of these issues is to solve the problem of bank credit risk regulatory. This paper analyze the problems of the legal supervision on credit risk that the City Commercial Banks are facing with, and then give some advises to improve. This article has four main divisions. The first part is introduction of the basic conditions of the City Commercial Banks. The second part is the basic conditions of the credit risk and reasons of legal supervision on credit risk of City Commercial Banks. The third part is introduction of the presently condition of the legal supervision on credit risk and the shortcomings of it. At the end of this article, I put forward some opinions and suggestions to perfect legal supervision on the credit risk of our country’s City Commercial Banks.