Commercial Bank Credit Risk Management Research

As the economic life line of the country, commercial banks are important constituent part national economy. Banks are special enterprises which manage a variety of risks including credit risk, market risk, operational risk, liquidity risk and reputation risk, etc.Along with the development of financial markets and the emergence of financial derivatives, credit risk has become more and more one of the most vital risks for commercial bank. Currently, China is faced with a huge uncertainty and the national economy has shifted towards a steady growth. Meanwhile, the traditional business model and operational management of commercial banks are impacted by many interweaved factors such as the implementation of Basel New Capital Agreement, horizontal competition pressure, market-oriented interest rate reform by the Central Bank of China,Internet finance and other new financial forms. The global financial crisis in 2008 has revealed that risk management of Chinese commercial banks need to be perfected.According to the analysis of the financial environment, credit risk loss accounts for over80% of the total risk of commercial bank losses. However, compared with developed countries, our country is relatively backward in credit risk management of commercial banks.Based on the analysis and research of credit risk management recommended by BaselⅢ, the experience of foreign advanced credit risk management as well as recent typical cases of credit risk for commercial Banks, this thesis point outs the problems existing in credit risk management of China’s commercial banks and puts forward countermeasures to promote credit risk management of commercial banks, which mainly include: establishing a good credit environment, reinforcing the details management of commercial bank credit risk, perfecting the credit risk model database construction, promoting personnel training and forging thorough external supervision system of credit risk. The thesis also proposes to set up “three centers” i.e., the approval center, lending center and audit center, to improve the internal control system, suggests that commercial banks should integrate the Internet finance model to strengthen credit risk management ability, and propose tracking of credit risk management system based on customer behavior.