China’s Commercial Bank Credit Risk Regulation Research

In the current financial system of our country, bank risk reflects almost financial risk. So it is very important to research the management of commercial bank credit risk.As most important part of commercial bank risk management, credit risk management is theorized in Basel II Financial Crisis. Thereafter, hundreds of banks value it much and apply new capital accord to raise the credit risk management all over the world.Based on money dealings, commercial banks are different from enterprises, because their capital comes from deposit and loan. Low proportion of free capital determines high risk of commercial banks. Modern financial competition is contest of financial risk management, rather than the race of capital amount. Therefore, researching especially Chinese commercial banks, this thesis analyses and estimates credit risk and then gives suggestions how to improve the defense system from credit risk of Chinese commercial banks.