A Comparative Study Of Commercial Banks And Foreign Bank Credit Risk Management

Now, credit risk management is not just the core content of the modern commercial bank risk management, and also become one of the most challenging areas of risk management of commercial banks with the booming financial markets and financial derivatives. In2007,"Financial Crisis" originating from the United States led to the commercial bank credit risk exposure gradually and let the global financial crisis become seriously, the nature has become more complex. At the same time, it also allows commercial banks’credit risk has become the object of attention in the field of worldwide financial.Since China joining the WTO, the pace of economic globalization has improved significantly, the rapid development of the commercial banks are obvious to all the people. But because of the liberalization of China’s financial market is still in its infancy, and the proportion of loans still total absolute proportion of assets, compared with the New Basel Capital Accord and the Western developed countries, commercial banks credit risk management of the bank’s credit risk management at a lower level of credit risk management system still exist many problems, there are still inadequacies in credit organization structure, the credit business processes, and performance appraisal. Therefore, China’s commercial banks can’t realize the banking business objectives to maximize the risk-benefit.This paper attempts to proceed from the practice of China’s commercial banks and Citibank insights, analyzes the connotation, the necessity and the status of China’s commercial banks credit risk management, then to the Citibank as the representative Western developed commercial banks in the credit risk management practical experience as well as the comparison of our commercial banks the Citibank credit risk management, at the last to put strategies and suggestions by China’s commercial banks to enhance credit risk management.