Suzhou A Branch Of The Agricultural Bank Of China Credit Risk Management Problems And Countermeasures

January 14, 2013, the CBRC held a 2013 national telephone banking supervision videoconferencing, clear the work of 2013 was focused on banking supervision to guard against and defuse financial risks. This work arrangement and emphasized the importance of financial institutions, especially the quality of the risk of banking institutions, credit business as a traditional banking business, will become the focus of future regulation. National commercial banks are important carrier of the country’s economic lifeline, they shoulder important corporate mission and national responsibility. " BCCHK improve the core competitiveness is the basic direction of the reform in the current urban branches. As BCCHK frontier fort is facing the whole market, facing the most intense competition, the problems are concentrated, they also reflecting the most prominent contradictions. " We can say that the development of urban branches fundamentally determines the fate of state-owned commercial banks. Based on this, the state-owned banks in today’s market environment is very complex when playing their roles, fulfilling national responsibilities, we must strength the management urban branch management, particularly credit risk management, improve the credit risk control awareness of urban branches, build concept of comprehensive risk management, give full play to the role of credit risk management.Branches are the forefront of a bank, which directly face the customer, access to customers, but also received a lot of information without screening; branches provided most profits for banks, but they also faced a high incidence of bank credit risk. Now, interest rate is also limited by government, the difference between deposits and loans is still the main source the profits for banks, especially state-owned commercial banks. Rapid changes in the international economic environment, small and medium domestic bank meteoric rise, the spread range is strictly controlled People’s Bank of China and the banking supervision department, under such a grim situation, any financial institution you want to get considerable development, and enhance their profitability, we must discover the credit risk, and the steps necessary to take effective measures to prevent risks effectively, transfer or mitigate risks.A branch of the Agricultural Bank of Suzhou also inherited and followed the pattern of the head office and the routine, the actual operating particularly credit risk management process with little innovation, risk management concepts and methods can not be fully integrated with daily work in close contacted manager. Some customer managers even hold the idea that the customer credit risk management is only part of risk management responsibilities, there is no relationship with the credit department or marketing department which potential risks evident. On the other hand, along with the reform and opening up, China is increasing in a high speed, the country gradually opened worldwide, some foreign banks with extensive management experience and advanced management concepts gradually active in all levels of city size. Some historic foreign banks tend to have sophisticated risk prevention and control work plans and implementation methods, the presence of the gap compared to domestic banks can not be ignored. The arrival of foreign banks in the domestic banking credit risk makes the work of an unprecedented degree of attention, increased awareness of risk prevention and control of domestic banks sense of urgency and responsibility.