Research On Personal Credit Business Risk Management Of Commercial Bank

In recent years, as the increasing of china’s economic scale and improving of livingstandard, the kind and amount of personal consumption increase by a large margin. Nowadays,people’s consumption level and consumption structure have changed significantly. Newfinancial products have allowed consumers to borrow against future incomes and consumeimmediately. This kind of consumption concept is widely accepted by the people. The valuesand behavior patterns are important part of people’s daily life. In order to meet the diversifiedfinancial demands of residents, our commercial banks carry out a lot of personal creditbusiness. The business includes credit card、house and car mortgage loans、study abroadloans、business loans and so on. The financial products are adequate to meet current needs.Meanwhile, the personal credit business is an important asset and profits source of thecommercial bank. The personal credit business is an important part of all the loans. Itpromotes the long-term, stable, healthy development of the loan business.However, the risks and benefits are symmetrical. Commercial banks make profits by thepersonal credit business. At the same time, Commercial banks face personal credit default,moral, operational risk. Risks may cause economic loss or a certain reputation. Meanwhile, thepersonal credit business involves many sections and sections have complex links. The riskpoints are widely dispersed, small-focused, high frequency and widely-influenced. Therefore,risk management of commercial banks has become an important part of corporate riskmanagement.Based on the understanding above, this paper, researches the personal credit of Acommercial bank branch in Henan province as object, reviewing previous researches andpractice, basing on the actual situation, using comprehensively data, charts. Throughsystematic analysis of a commercial bank branch in Henan province risk managementsituation, we can value the completeness of its risk factors management and monitoring indexrealized degree; therefore construct personal credit risk management evaluation system. Thanwe can analyze gains and losses and summarize the lessons and give further proposesuggestions. As the personal credit risk management research is a common issue faced bycommercial banks, I expect this paper can provide a reference for Commercial banks.