The Research About Credit Risk Management Of Off-balance-sheet At BC Bank Hebei Branch

Since the reform and open, financial environment of our country has changed greatly and complicatedly along with Chins’s rapid economic development, and so did the commercial banks. Rapid and highly growth of off-balance-sheet activities adds a touch of glamour to the diversified management. As the first level branch of Hebei Province, BC bank Hebei Branch has been creating its off-balance-sheet credit assets. The risk and challenge grow with each passing day. On the one hand the bank has the rapid expansion of its off-balance-sheet business; on the other hand, due to the rapid expansion, the risk control and management concepts and methods of its off-balance sheet business credit risk was ignored which need to improve and perfect.This paper analyses the development situation of off-balance-sheet business in BC Bank Hebei Branch and researches the market access, approval and post loan management of the control on credit risk. The purpose of this paper is to give a effective and efficiently suggestion to credit risk prevention and control. This paper is divided into seven chapters:Chapter one is an introduction, which consists of the background, subject, and the purpose of the research. Chapter two briefly explains the basic principle, characteristics, and the development status of the off-balance-sheet business. Chapter three analyses the development situation, internal and external business environment of their credit risk management. Chapter four researches the methods and measures of the identification and access of the off-balance-sheet in BC Hebei Branch. Chapter five analyses the assessment and measurement of the vocational work. The paper summarized the thesis in the last chapter.This paper mainly talks about several conclusions:Relying on its international settlement network, the off-balance-sheet business of BC Hebei Branch takes great advantages in the local industry while thier credit risk management needs to be improved. The off-balance-sheet business of credit risk management in BC Hebei Branch faces a plenty of serious external problems as shortness of internal coordinational management system, increasingly stringent regulatory and policy, and the highlight risk in key industries. Besides the external elements, they also have to deal with the internal problems of lack of awareness on off-balance-sheet business on credit risk management, high concentration degree of credit industry, and the shortage of credit recourses. For a better and healthier promotion of off-balance-sheet business, BC Hebei Branch should focus on the risk identification by the facts like macroeconomic environment, key customers characteristics of industry, business management and financial situation of the customers, and then they should do the optimization and improvement on related processes. Standing on the side of customer credit rating system, debt rating system and risk classification, it is necessary to assess by using the methodology of probability of default and LGD. BC Hebei Branch should put the strength on credit risk warning of overdue, financial and other negative aspects. They also can do the integration work on decentralized risk management node, and then they establish the whole processes of off-balance-sheet business credit risk control system.