Research On Credit Risk Management Strategy Of Agricultural Development Bank Of China JM Branch

Agricultural Development Bank of China JM branch (hereinafter referred toas JM branch in the paper) was established in1996, as an agricultural policybank which performs the important functions of grain, cotton and oil purchaseand sale and processing in China, and has provided strong financial support tothe agricultural development in the City. Bank is a high-risk industry, and risk iseverywhere during business operation. In the risk structure, the most importantpart is still credit risk. The credit risk management is closely related with thebusiness activities of JM branch, and its management level reflects the Bank’score competitiveness. Therefore, the prevention and mitigation of credit risk isan ever-lasting theme for JM branch’s operation management.On the basis of the general situation and operation particularity of JMbranch, according to the operation data of credit business of the branch, the paperexplains features of various credit risks that JM branch reflects via makingstatistics and analysis on the data of credit business of the branch.The paperfocuses on the credit risk management status of JM branch by combining fieldresearch and theory. It also proposes the existing problems of the Bank’s creditrisk management and identifies the causes through the analysis of the operationalcharacteristics and risk management status as well as the credit risks JM branchis facing. Last, the paper discusses specific measures to complete credit riskmanagement of JM branch, including creating cultural atmosphere of credit riskmanagement, increasing credit risk prevention awareness, strengthening creditteam construction, perfecting comprehensive risk management system throughimproving management mechanism, risk pre-warning mechanism and riskmanager mechanism, adopting advanced credit risk prevention and control meansand techniques to improve credit risk management ability, and strengthening thecompensation and transfer mechanism so as to reduce unpredictable lossescaused by credit risks. It mainly intensifies management after loan andconstruction of internal control system of JM branch, proposes strategies andmeasures for JM branch credit risk management from different view points, and strives hard to reduce the credit risk that JM branch is faced to fundamentally.