Credit Risk Formation And Prevention Of City Commecrial Bank In China

This thesis focuses on urban formation and precvention of credit risk ofcommercial bank in China. With the development of economic and financialglobalization, more highlights the importance in economic development ofcommercial banks. Commercial banking as an important part of the city, plays animportant role. Accompanied by the development of the various derivative products,financial market liberalization steps forward, risks coming up, a big part of thebanking crisis from credit risk.This thesis firstly selects the significance of this topic and writing background aswell as innovative features, then introduces the concepts of credit risk management,and introduced from the traditional and modern significance of credit riskcharacteristics. Then, domestic and international credit risk management system withthe results of the sort, according to the latest analysis of the relevant data, with Bankof Jilin as an example to identify many problems exist in the current managementsystem of city commercial banks in China. Faced with these shortcomings, this paperproposes appropriate solutions and theory combined with practical, for fundamentallyimproving the existing programmer of banking risk management, providingtheoretical support for future research.This paper is divided into five parts; the main structure is as follows:The first part is to introduce the background and significance of the research,analyses by scholars to study status of credit risk. And set forth the idea of writingthis article, as well as lack of innovation and research.The second part is from a theoretical point of view, starting with two aspects of broad and narrow sense describes the meaning of the credit risk, clarifies credit risk inthe traditional sense and the present sense of the character. Then from both micro-andmacro-level illustrates the impact of credit risk for the economy. Finally, an in-depthanalysis of the causes of credit risk, including asymmetric information, incompletecontracts, adverse government intervention.The third part describes the current situation of city commercial bank’s creditrisk management in China, mainly bad loans declined as a whole, but the amount andratio still too high; capital adequacy level is low, banks and enterprises, Bank andGovernment Relations tense. And according to the latest statistics, focuses on bankingcredit management situation analysis of Jilin province.The fourth part finds out all kinds of problems in the development of urbancommercial banks in China today, such as risk management insufficient data riskrating level is low, risk level, lack of effective response and risk transfer tools; theBank’s own credit risk awareness, lack of professional and managerial talents andcarries out a detailed analysis of this issue.At last, in the fifth part, with both macro-and micro-management for the earlieranalysis of the problems existing in city commercial bank in China, this paper putsforward solutions.