Research On The Operational Risk Of Credit Business Of M Commercial Banking Company

From the end of 2014, influenced by the weak global economy and the sluggish domestic real economy, Chinese economy has come into a bottleneck stage after a long-term fast development. The traditional way that stimulates economic growth by investment, consumption and export does not work very well any more. Because of the real economy’s bad condition, there are more risks in the operation of financial industry, especially commercial bank, including a great number of credit risks and non-performing assets. As the first safety wall constructed by commercial banks, operational risk of credit has different degrees of flaws and leaks due to the problems of its management. The property of various forms makes the credit risks undetectable.By means of presenting the recent cases of operational risks of credit in commercial banks, this paper concludes the reasons for credit risk, then put forward some countermeasures to control and prevent risks, and finally enrich the cases in this study field.Owing to the high-degree state supervision, relatively speaking, China was less influenced by economic crisis. However, at the same time, this management style reveals commercial banks’ deficiency in operational risks of credit management, including the excessive reliance on state macro-control, lack of effective countermeasures and inadequacy of self-performance, which all indicate that banks cannot achieve long-term development in market economy. Under this background, discussing the management of operational risks of credit in Chinese commercial banks, specifying the management mode and existing problems, and putting forward countermeasures, are of great importance to promote the management of operational risks of credit.In order to advance the long-term development of M Commercial Bank and guarantee its advantages in market competition, the most vital thing is to fully study its credit management mode, effectively decrease its credit risks, improve the quality of its assets and increase its profitability. Only in this way, can M Commercial Bank guarantee its powerful competitive advantages and stand out from the competition in the whole city and even in the whole province. Therefore, through the study on M’s real case of non-performing assets due to the operational risks of credit, this study analyzes the problems and reasons, puts forward countermeasures, enriches the cases in the field of operational risks of credit, meanwhile, provides some suggestions for M Commercial Bank’s operational risks of credit management.