Research On The Heilongjiang Branch Of Bank B’s Group Clients Credit Risk

Group clients are of high quality that commercial banks always compete for them, however, with the complex ownership structure, property and financial relations, as well as frequent and covert affiliated enterprises and transactions, group clients credit risk is difficult to prevent and control. Enterprise groups’ cost of losing credit is relatively low because of the information asymmetry between commercial banks and group clients, reduced social credit environment and several other factors, and those will result in the difficulty of identifying, evaluating, early warning and controlling of group clients credit risk by commercial banks. The explosion of group clients credit risk will cause immeasurable loss to commercial banks, jeopardize the safety of credit assets, severely hinder sustainable development of business, and endanger financial order of China.This thesis uses Bank B as the research object, applies the methods of literature research, case study and systematic study and discusses group clients credit risk’s characteristics, manifestations and origins. Besides, the thesis analyzes the general processes and contents of group clients credit from the Heilongjiang Branch of Bank B, and sets Enterprise A 、Bas an example to discuss systematically about the Heilongjiang Branch of Bank B’s group clients credit management that is before, during and after a loan. It also analyzes the bank’s group clients credit problems including lacking of consciousness of prevention and control of infrastructures credit risk, reductions of credit risk’s recognition capabilities and control abilities. Moreover, the thesis performs causal analysis from the perspectives the Heilongjiang Branch of Bank B itself, group clients, social credit environment, financial supervision, etc. Finally, it draws a conclusion of the optimization policies, which should be applied in the pre-loan and during loan risk management, as well as post-loan risk prevention and control for the Heilongjiang Branch of Bank B’s group clients credit, in order to improve the risk management efficiency of the banks’ group clients, and promote business performance and development of this bank.