Financial Early Warning Mechanism In The Application Of The Commercial Bank Credit Risk Management

Since humans have lending, credit risk exists in every corner of social economy, and always affects the development of human society. Facing the increasingly competitive market economy, commercial Banks play an important role in the process of the intermediary agent, commercial Banks is the main body of market, and its main threat comes from the credit.Commercial Banks started late in china, but the development is very fast, the total assets of entire banking industry showed a trend of rising, the proportion of credit assets in Banks’ assets is also on the rise. As one of the important departments I n commercial Banks, the credit departments operating conditions affect directly the bank profitability and asset security. At present, our country commercial bank credit rating system is not sound and data collection is not comprehensive.both of them restrict the management in credit risk. At the beginning stage, commercial banks in our country mainly adopt5loan classifications and6C method, compared with the advanced international banks, there are a lot of lag in multivariable model and modern credit model. In the fierce international economic competition, commercial Banks of China do not have any advantage. The research purpose of this article is that how to apply the enterprise financial early warning model to the credit risk management; improve the level of risk.Enterprise financial early warning system no matter in theory or practice has a good practicability. In this paper, standing on the point of view of commercial bank credit management, the enterprise financial early warning system into the credit risk management, through the establishment of applicable to specific borrowing short-term financial early warning model of enterprise, commercial Banks can take the borrowing enterprise credit conditions, make corresponding credit decisions. After granting loans, the financial early warning system can real-time monitor to the borrowing enterprise, when there is a sign of the credit crisis occurs, the warning system will send out warning signals is advantageous for the managers to take corresponding measures in time, reduce the loss of credit funds, realize the profit of bank.