Study On The Use Of Credit Derivatives In The Credit Risk Management Of The Commercial Bank Of China

Credit risk has always been one of the main risks faced by commercial Banks in China, for a long time, commercial Banks are mostly adopts the traditional way of passive credit risk management, In today’s economic globalization, find a new way of credit risk management becomes increasingly important. Credit derivatives is in this situation arises at the historic moment, it has the transfer of credit risk, improve asset liquidity and improve the return on capital and so on. In economic and financial crisis in2008, the international credit derivatives market has exposed many problems, speculative excess regulation, compared with the developed country, at present our country facing the development of the most important still is problem, therefore, how to reasonable use of credit derivatives to transfer the credit risk of commercial Banks of our country has a strong theoretical significance.In this paper, the research and reference of credit derivatives on the basis of the credit risk management of commercial banks, combined with the environment and conditions of our country at present the development of credit derivatives, put forward using the letters with the prospect and suggestion of managing credit risk derivatives. The full text includes five parts:The first part, the introduction, explains the research background and significance of the topic, research trends at home and abroad, research methods and technology route and the innovation and deficiencies.The second part, introduces the current situation of the basic concept of commercial bank credit risk and management, definition, classification and basic characteristics of credit derivatives, but also on the authority of the international agreement on the risk management of commercial bank credit risk management--provisions on the Basel protocol analysis.The third part, elaborated the development environment and conditions of the credit derivatives in our country, including the development of credit derivatives in our country reality needs, the development foundation and facing obstacles.The fourth part, focus on the credit derivatives to hedge credit risk management mechanism, including credit derivatives, credit derivatives pricing model, by comparing with other tools for comparative analysis of credit risk transfer, and found that credit derivatives can not only transfer credit risk, and increase the rate of return on capital, liquidity based active market function.The fifth part, combining with our country commercial bank credit risk management present situation, analyzes the credit derivatives in the necessity and Prospect of our application, and puts forward some policy suggestions in the development of credit derivatives market.