Based On The Cash Flow Of The City Commercial Bank Credit Risk Identification Of

In China, the financial core of modern economy. Has occupied a leading position in the banking sector in China’s financial system, plays a very important role in the central role of the role of financial. China’s commercial banks came in just ten years time, the International Bank for decades or even centuries traveled road, which can not be avoided, there are all sorts of problems, and these problems are restricting the robust health of China’s banking development,’s Accession to the WTO and the global financial crisis, the problems are more frequently exposed, making the country’s banks are also facing huge challenges. After decades of development, the main role of commercial banks in the state-owned commercial banks remain strong momentum of development of the local city commercial banks should not be overlooked, seems unwilling to complementary role in the positioning of the potential of a great catch in the financial the system more and more attention. Credit risk management has been the main content of the risk management of commercial banks, fragile local city commercial banks operating status, relatively strict regulatory characteristics, so the demand for credit risk management is more urgent. Credit risk management has many aspects, such as risk identification, risk prediction, risk measurement, risk analysis, risk control, risk supervision, including the recognition of credit risk is a part of the premise and foundation of other follow-up management.According to the characteristics of the local city commercial banks, trying to build a model of the recognition of credit risk based on cash flow in order to improve the commercial banks, especially the ability of the local city commercial banks credit risk management. This paper is divided into six parts:The first part is the introduction. Including a study of the issues raised and significance, research content and research methods;The second part of the literature review. This section includes three areas: foreign and domestic research, mainly domestic scholars have combed the research findings and insights on the commercial bank credit risk theory, and evaluated for this article topics and to learn from other people’s research The achievements for support;The third section is an overview of the risk management of commercial banks credit risk related theoretical analysis. Overview of the commercial bank credit risk mainly describes the meaning of the credit risk of commercial banks, the main features of the main content of the commercial bank credit risk and the credit risk of commercial banks, mainly in the theoretical analysis of the risk management part is combing risk management from creation to the present several major risk management theory, as well as cash flow concept brief combing, and its purpose is to lay the theoretical foundation of the good of this article;The fourth part of the establishment of the city commercial bank credit risk identification method based on the cash flow. This part first describes the importance of the city commercial bank credit risk identification, followed by analysis of the identification and measurement model of the existing commercial banks, pointing out the shortcomings of its existence, the last city commercial bank credit risk identification method based on cash flow;The fifth part is based on the cash flow of the city commercial bank credit risk identification method in Liupanshui City Commercial Bank;The sixth part of the conclusion. The conclusions of this paper include recognition aspect is the most important part of the credit risk management of non-performing loans is the main cause of the credit risk, the credit risk of corporate finance needs comprehensive survey and the need to establish the identification method based on the credit risk of cash flow.Research contributions:Based on the thorough analysis of commercial bank credit risk and local commercial banks credit risk specific characteristics, non-performing loans appear to be the main reason of the local commercial bank credit risk. After that, this essay constructs a the local commercial bank credit risk identification financial indicators system, including balance sheet, equity and cash flows.