Credit Risk Control For Anhui Branch Of Bank Of Communications

The rapid development of information technology and the accelerating process of the global economic integration not only provide development opportunities for commercial banks, but also bring increasingly serious financial risks. Asian financial crisis in 1997, U.S. subprime mortgage crisis in 2007 and global economy’s slow development recently make theorists and practice experts aware of the importance of the risk management and control for commercial banks. As one of the most important assets, the risk control for the credit assets is the core part of the risk management of commercial banks. The quality of credit risk management and control to some extent directly affects the business development and profits of commercial banks. Taking Anhui Branch of Bank of Communications as the research object, this paper investigates the problem of credit risk control and provides some constructive suggestions in order to help Anhui Branch of Bank of Communications strengthen the credit risk control.Based on the literature review of the existing theories and practical experiences about credit risk management and control for commercial banks, this paper firstly states the research background, purpose and significances. Secondly, by considering the overview, organization structure and development status of the Anhui branch of Bank of Communications, this paper outlines in detail the credit business risk control status of the Anhui branch of Bank of Communications from five different aspects, i.e., the risk control process, pre-loan investigation system, loan examination system, post-loan monitor & treatment system, and the related accountability system. Thirdly, the existing problems of the credit risk control system for the Anhui branch of Bank of Communications are summarized and the reasons are analyzed. Fourthly, with the analysis of several typical cases and the successful credit risk control experiences of the foreign commercial bank, this paper proposes some policy recommendations, i.e., completing pre-loan investigation system, strengthening loan examination system and improving post-loan monitor & treatment system, to further optimize the credit risk control system for the Anhui branch of Bank of Communications. Lastly, this paper summarizes the whole contents, points out the existing shortcomings and provides some possible research directions.