Research On Credit Risk Management Of Loan Risk In China’s Commercial Bank

Our country commercial bank involves four main risks, including in the actualoperations: credit risk, interest rate risk, operational risk, interest rate risk, credit risk isthe main credit risk and has been paid much attention to. This is mainly due to thepresent stage of indirect financing is still the dominant, deposit and loan business bankis the most basic and the most important, is also an important source of profits, the riskmanagement and control is directly related to the core competitiveness of commercialbank stability and bank earnings. Credit risk management including the credit riskidentification, measurement, control, the three stages of credit risk measurement is thebase of credit risk management. Proper selection and use of credit risk measurementmethod is an important content in credit risk management.The problem of credit risk management of commercial bank credit business, thispaper mainly studies in. On the basis of theory on the risk definition, current situationof credit, empirical research method for credit risk management of Commercial Bankof traditional five stage classification and credit rating method, at the same time, theuse of modern risk management model of VAR quantitative risk analysis on evaluationmethods of commercial banks and the five grade classification, found that theinfluence of the causes of low credit risk the management level of our country isbackward management system, lack of management method, reasons for the lack ofperformance appraisal, the social credit environment is poor. In view of the aboveproblems, some constructive suggestions: improve the management system, theintroduction of foreign advanced management methods, improve the existingmanagement methods, the establishment of a comprehensive performance evaluationmechanism and the strategic target and the bank’s parallel, further improve the socialcredit environment, the Gou Jianquan society within the scope of the credit system. Through a deep research on credit risk identification, measurement of Chinesecommercial banks, the control method, for Chinese commercial banks to improvecredit risk control ability, so as to provide a powerful reference to enhanceinternational competitiveness.The main conclusions of this paper: first, the level of credit risk management ofcommercial banks in China still exist prevention mechanism is not perfect, the lack ofmeans of measurement, risk control measures and fewer problems; second, thetraditional credit risk management methods have certain limitations, the actualsituation can not reflect the true credit risk, credit risk management method using VARmeasurement model is better than the traditional credit risk; third, in view of theexistence of credit risk management of China’s commercial banks in risk management,need through the advanced credit risk measurement methods and continuously improveto risk control.