A Study On Z Bank Suzhou Branch’s Risk Control

With the transition of economic development, the reform of financial industry is accelerating and deepening, especially in banking industry. Retail credit business is increasingly becoming a strategic fulcrum during banks’ reform and development. After a rapid growing over the past few years, there have existed some problems in retail credit business. Particularly for merchant banks, whose risk management and risk control can hardly in the current environment? That is, the retail credit business is expanding significantly whereas the structure of risk management has not been fully established or enhanced.This research first presents a review on the theoretical foundation of risk control mentioned in many domestic and foreign literatures. Then, based on theories about internal control and credit risk, the research analyzes how the risk control of retail credit business is conducted in Suzhou Branch of Z Bank, discusses the major risks in the management, and further indicates source of risks. The study has uncovered problems in the current team of product development, controlling of business processing and the supporting system. Finally, with a combination of peers’ advanced management experience and the practical operation characters of retail credit business of Z bank Suzhou, this research aims to improve the risk control capability by making rationalization proposals including establishing a risk grading system of individual credits, setting up an examination and approval team, seeking quality cooperative partners, strengthening post-lending management, optimizing the internal control system of credit risk, and persisting comprehensive risk management.