Study On Credit Risk Management Of Commercial Bank Based On Economic Capital

Credit risk is the main risk that the commercial bank faces, with the deepening slowdown in the pace of interest rate market and national economic growth, savings and loan spreads narrowed, our country commercial bank profit margins continue to shrink, profitability will be reduced. At the same time, due to the national economic downturn, the deterioration of the financial situation of the bank customer, the bank is facing the credit risk is increasing. Therefore, in the current environment, good credit risk management, improve the management level, enhance the credit risk prevention and control and resolving power, and promote the rapid development of credit business, it is particularly important in the current environment. In 2005, the NY Bank of China introduced the economic capital management into the comprehensive risk management system, the economic capital management as an important risk management tool, has been applied to the NY bank branches.In this regard, this paper combined with the practice of the LZ branch to explore and research. LZ branch is the two level branches of the NY Bank of a large state-owned commercial bank in our country. The concept of economic capital management is not widely accepted in the process of credit risk economic capital management. The economic capital management is used to stay on the surface. On the basis of existing problems, the paper makes a summary of the reasons for the problems, which are:the extensive mode of profit, the understanding of the basic mechanism, the weak performance of the data base, the imperfect performance evaluation system, the decline of customer credit rating, the structural imbalance of individual loan and loan, the high economic capital coefficient, and the profit margin. Finally, based on this, the paper puts forward the optimization measures of LZ branch credit risk economic capital management, which is to strengthen the economic capital and the value management idea, to speed up the information construction, improve the performance evaluation system, optimize the loan structure, reduce the occupancy of economic capital, deep into the development of characteristic business, improve the economic added value, expand the source of profit and develop the intermediate business. Through the case study of LZ branch, this paper provides a good reference for the management of LZ branch of credit risk economic capital.