Research On The Credit Risk Management Of Bank Of China Yantai Branch

In recent years, as the credit environment in China have a progress,the phenomenon of malicious evasion of bank debts are no longercommon, to improve the social credit environment does not mean thatcommercial banks credit risk reduction. Increased competition in theindustry, global economic fluctuations, business risks are virtually thebank credit has also been increased. China’s policy of economic realitythat the end of our economy from falling into the waves, but also to acertain extent, overshadowed in recent years, China’s economy has notexperienced the real test of the facts, but also cover the commercial banksshould be exposed to the true credit risk. How to stand on its owncommercial bank position, take full advantage of domestic andinternational economic and policy environment, in line with theirconditions for credit risk management is to encourage the author to studythe background. This article start with the theoretical start of the international status ofthe current credit risk management study, a comparative analysis, thenthis involves the concepts and content are outlined, so as to later in theempirical analysis and studies to lay a theoretical foundation. For betterrisk management of credit lines at the grassroots level to carry out thesituation, this paper Yantai Bank data, for example, to do a morecomprehensive empirical analysis. Not only analyzed the structure ofYantai Branch’s credit conditions and asset quality also introduced theBank’s credit risk management Yantai situation. This also has data from2008samples of the correlation analysis and multiple linear regressionanalysis, the results from the analysis and the regression equationsummarized in the quality of assets associated with the relationshipbetween several factors and these factors are and the relationship betweenasset quality. One credit balance and credit balance of BBB-ratedcustomer accounted for more than the existence of the most significantlinear relationship, indicating that the bank risk management, clientaccess standards have been more effective implementation; credit balances with collateral rate guarantee there are more significant linearrelationship, indicating that the line in the implementation of riskmitigation conditions, can guarantee a positive way of using mortgage orpledge, the expansion in credit assets, but also take full account of theway of security options. Multiple linear regression equation deducedcredit risk management of the line in good condition, from2008to2011the expansion of assets, did not cause a significant increase innon-performing assets, but due to proper control measures,non-performing loan ratio for credit growth in the size of graduallyreduced.Empirical analysis concludes that the later in-depth study based onempirical analysis, based on this article from the management level andoperational level, the Bank of China Yantai, credit risk managementproblems in the expanded analysis. Management level problems aremainly related departments is unclear, loan approval is not isolated; fullrisk management culture is not fully established; incentive and restraintmechanisms asymmetry; face other potential risks. Operational level problems are the lack of effective credit analysis tools; customer ratingsystem to be improved; post-loan management work in place; by way ofsecurity risk mitigation is not obvious. For some of the issues raisedearlier in this paper continue to put forward opinions and suggestionsaccordingly. The proposal to accelerate the management level to establisha sound internal control system of credit risk; establish a comprehensive,full flow, full risk management system; the implementation of riskmanagement process transformation plan, optimizing the incentive andrestraint mechanisms; to absorb the credit portfolio management, to guardagainst potential risks. Recommendations on the operational level andinnovative credit analysis tools; further optimize the customer ratingsystem; after the establishment of credit risk early warning system;strengthen the evaluation, emphasis on security conditions, the risk ofsustained-release effect.