Research On Steel Trade Enterprise For Credit Risk Management Of S Branch Of X Commercial Bank

The core problem of commercial bank’s management is risk management. Its survival and development depend on its capability of managing risks. Credit business is an important part of bank business, therefore, capability of managing credit risk also decides the survival and development of bank. As credit risk management is so important that the international bank circle and academia pay attention to it early and discuss and make research on it deeply. At present, it has formed a relatively comprehensive theoretical system of improved recognition, assessment, measurement and management and techniques.With development of financial globalization in the recent years and application of information technology in financial trade, the credit risk presents greater and greater complexity and elusiveness, which attracts attention from international financial circle. Basel Agreement I、 II、 III proposed by Basle Committee On Banking Supervision tries to involve the credit risk into Basel Capital Supervision System and advance with times to put forward with responding policies according to the risk. These three agreements promote course of international bank supervision and risk management.In China, because of historical reasons as late start of market economy, the level of commercial bank’s credit risk management is still backward. Although the government carries out law and regulations such as Rules for Regulating the Capital Management (trial) and so on and the researches on it from the academia emerge one after another, but enough attention from commercial bank on credit risk is still not attracted. To them, the aim of seeking interests is higher than the need of credit management. If commercial bank can not realize significance of credit risk management and carry out the rules according to laws and regulations, then the through theoretical system can not take it function of preventing risks. Therefore, it is especially important to research credit risk management of our commercial bank.2012 witnesses the credit risk event of steel trade enterprises in eastern China. It is called "steel trade crisis" in the industry, which makes many banks suffer lots of loss. The reason is problem incurred in bank credit risk management.This paper takes S branch of X commercial bank as an example, analyzes real steel trade enterprises case, reveals problem in its credit risk management, summarizes lack of internal control system, thin risk consciousness of employers, imperfect performance and check system and internal control on in place, and at last further introduce the problems existing in credit risk management in commercial bank. Then starting from risk recognition, risk management assessment, risk control and performance assessment against steel trade enterprises, optimization scheme of credit risk management system is designed. At last, responding solutions and measures are proposed on optimization of credit structure, steel trade enterprise access, internal control construction strengthening, risk culture construction, improvement of social law environment and credit environment.The contribution of the paper is to base on borrowing modern commercial bank risk management theories and combines the credit risk practice of steel trade crisis of S branch of X commercial bank to analyze general causes and particular causes of this steel credit crisis. It also collects real case of steel trade enterprise credit risk loss to analyze the risk points leading to loss and propose management suggestions, making the explanation more straightforward. Besides inspecting potential problems of commercial bank’s credit risk management from the perspective of theory, this paper also provides real case analysis as reference. Relating theory with practice can help strengthen operation of measures, making research of this paper closer to practical work, thus making the practical problems more convenient to solve. On the background of slowing down the economy, as for how to manage the credit risk of periodical trade(such as non-ferrous metals, resources, real estate and so on), this paper has reference value on macro control level.