Credit Risk Management Of CPSB Hrbin Branch Based On Financial Reports

Credit asset is the most important project of assets business in commercial banks, which is the largest share in assets business, and is the main source of bank profit. At the same time, the credit business with credit risk constitutes the main source of the operation risk in commercial bank. If the credit risk of commercial banks can not be effectively controlled, it will directly affect the profits of commercial banks. Also it will lead to bankruptcy, and influence the security of the national financial system. Therefore, how to control the credit risk of commercial banks, has become the focus of widespread attention. From different angles, researchers put forward some helpful suggestions in order to control the credit risk.According to the daily data, the financial statements are prepared regularly. It is the transfer to the outside, and reflects the information of the financial position, operating results, cash flow in a certain period of time. Through the systematic analysis of the financial statements, the bank could understand the company’s solvency, profitability, operation ability and corporate fundamentals etc. Commercial banks can judge the solvency and the reasonable loan amount range of the enterprise who applies for loans, from the financial statements reported information and its basic situations. From the beginning of each borrower and each loan, commercial banks should control the its credit risk and safeguard bank operating security. After lending, the bank can understand the guarantee degree of loan material and the use of the loan, through the systematic analysis on the financial statements. This is an effective means to control the risk of bank credit.This article is based on all above. From the point of analyzing on financial statements, it puts forward the effective ways to prevent credit risks of Postal Savings Bank of China in Harbin branch. This paper reviews and summaries the credit risk management literature at home and abroad. Then it introduces comprehensive risk management theory, asset liability management theory, the balance of risks and benefits theory, and information economics theory as the theoretical support. From the macro and micro aspects, it analyzes the influencing factors of the credit risk, and points out the currently existing problems of credit risk management in the PSBC Harbin branch. Followed it, the paper constructs the financial index system of credit risk management. This system regards financial statements as the analysis object, assesses all aspects of applying company, and provide a reference for the credit decision from enterprise’s five dimensions (the asset quality, profitability, solvency, operating capacity and corporate fundamentals). Finally, from different angles, the paper puts forward some countcrmeasurcs to strengthen the credit risk management of PSBC Harbin branch, which offers reference and inspiration for the credit risk management of commercial banks in China.