Study On Credit Risk Management Of Bank D’s Group Custermers

Along with the development of society economies, an increasing number of companies have upgraded their organisation forms into syndicate groups, in order to integrate their corporate resources and to spread operation risks. These syndicates with enormous resources and sizes, therefore, have become the sought-after targets for most of commercial banks. However, whilst they bring tremendous profits to banks, they also create credit risks accordingly. Particularly, the consecutive cases of credit crisis such as Delong and Yin Guang Xia in recent years reveal the problem of commercial banks on risk management of syndicate groups. Currently, China’s downward trend of the economy is still ongoing, plus the concentrated outburst of credit risks in a wider range, which poses a prominent significance to credit risk management on loans to syndicate clients.Under the guidance of the ’Three-Big One-High’ strategy, syndicate groups with solid financial basis and diverse services needs have become the key promotion targets for D Bank. Consequently, it is increasingly important for D Bank to enhance its credit risk management capacity to syndicates clients, especially against the backdrop of economic recession.This article first analyses the identification, characteristics, and credit risks of syndicate groups in general, followed by the operation outlines of D bank on its syndicate clients, together with the existing risks and the causes. A case study of H group is then described in details to illustrate its credit-committing programme in D bank as well as the risk points and control scheme. Finally, a concrete solution is proposed specifically for D bank on its credit risk management operation, in terms of reinforcing due diligence, raising technology investment, and improving its after-credit management levels.