A Stduy On Credit Risk Management Of Commercial Bank In China

In recent ten years, with the rapid developing economy of China, the financial market has entered a period of prosperous times. Meanwhile, the commercial banks have a qualitative leap in the process of development. At the same time, a shift of the economic entity under the protection of the government has begun to transform to be autonomous management and by its own risk gradually. However, with the fast advancement of the commercial banks, we are also experiencing severe challenges and the survival pressure. Starting from 2014, the non-performing loan of the commercial banks also increased, of which the annual net increase of domestic commercial banks amounted to 250 billion dollars. Talking about the soaring non-performing loans of the commercial banks, on the one hand, it was caused by the changes of the external economic surroundings and the market volatility of the depth adjustment in the industries construction. On the other hand, it also reflected that the traditional credit risk management was unable to adapt to the new surroundings and the emerging problems.The study content of the thesis will be mainly concerning about the credit risk management of the commercial banks, as AB Bank a core study objective, establishing a management system of reducing or eliminating the credit risk for a purpose for AB Bank, improving the competitiveness in the inter-bank markets. At the same time, it can also provide the inter-bank with some reference for the credit risk management. Firstly, the dissertation simply makes an analysis of establishing the credit risk management system combined with the operating surroundings of the commercial banks at the moment. On the basis of the theories of credit risk concept, influencing factors, expression forms and management methods, analyzing the current situation of AB Bank credit risk management, in light of the differences in the management values of the internal banks and the insufficient abilities of the management quantitative as well as the high risk systematic problems, the credit risk management system will be established. The design ideas of the credit risk management system of AB Bank have cited the theory of the Enterprise Risk Management-Arrangement Frame. Setting new management objectives, the three risk control processes of AB Bank loans will be updating to five stages, including risk identity, risk evaluation, risk control, risk monitor and risk disposal. In the stages of risk evaluation and control, increasing customers' credit rating and quota management quantitative methods, the system will break the original single decision-making method and improve the scientific judgment of the credit risk decision. The shape of the credit risk management system will help the management organization structure of AB Bank, clearing the duties and responsibilities of each part, establishing the unified credit risk management standards, fostering credit risk management philosophy and culture. Subsequently, the thesis will put forward the further thinking of the credit risk management and make reasonable proposals to consolidate the results of the credit risk management.