Research On Risk Management Of Mihua Rural Commercial Bank

With six times of interest rate cuts during the year 2015 and the interest rate market of the banking industry fully loosing, China's banking industry is facing the changing business environment. China's finance industry is dominated by indirect financing, and the income of loans is the main profit of the commercial banks with the result that the credit risks are the main risks to the commercial banks. For better accomplishing the bank's business objective, the commercial banks should keep on restructuring its financial functions, improving the system of management and administration, enhancing the understanding of the importance and necessity of credit risk methods, advancing the bank risk management to a height of the core status in all of the departments, trying to prevent and solve all kinds of credit risks, and making a bigger contribution to area's construction.This thesis, which starts with credit risk theory, compares with listed city business banks, and bases on actual situations of Mihua Rural Commercial Bank, deeply analyzes all kinds of credit risks which Mihua Rural Commercial Bank is facing in credit management progress, and deeply analyzes what causes the credit risks. This thesis is divided into six chapters. The first part presents the background, significance, the present domestic and overseas condition, purpose of the thesis and the method used in it. The second part presents credit risks management theory and related theories, which includes information asymmetry theory, credit risks management progress and so on. The third part provides all-round the actual situations of Mihua Rural Commercial Bank credit risks management from two viewpoints of assets situations and monitoring risk indicators analysis. The forth part mainly analyzes the chronic problems in Mihua Rural Commercial Bank credit risks management, which includes the unbalanced structure of loans, the steady rising ratio of non-performing loans, the balance of Guarantee loan and high overdue loans. The fifth part analyzes the changes of risk factors in extreme environment and the influence of the changes to Mihua Rural Commercial Bank by setting the real estate collateral liquidity ratio for pressure factors from mild stress, moderate stress and severe stress, which is mainly according to property assets mortgages of Mihua Rural Commercial Bank. The sixth part offers the countermeasure to perfect credit risk management for Mihua Rural Commercial Bank according to the existing problems.Through the research of Mihua Rural Commercial Bank credit risk management, the thesis has a positive significance on the new rural construction, maintaining sustained and steady development of the bank, and promoting the stability of the financial system.Possible innovations of this thesis include:Comparing to other scholars of credit risk management researches which are studying about the identifying, evaluating and measuring in commercial bank, this article analyzes the situations of credit assets in Mihua Rural Commercial Bank from all aspects to have a thorough knowledge of credit risks management in Mihua Rural Commercial Bank, which is mainly according to the credit assets analysis from product types, industry distribution, five categories distribution and loss provisions distribution.Considering the important features of Mihua Rural Commercial Bank which is a local commercial bank, this paper pertinently makes a horizontal comparison between listed city commercial banks and Mihua Rural Commercial Bank, to reflect the individuality and generality of local commercial banks in a large extent.Considering the risk features of Macroeconomic environment and Real Estate Mortgage Loans, this paper in fifth chart sets liquid ratios of Real Estate Mortgage as Pressure Factors, to evaluate the exposure changes of Mihua Rural Commercial Bank when the Pressure Factors become worse.The limitations of this thesis are as follows:The research data is Mihua Rural Commercial Bank's credit data in year 2014, as this thesis was finished at the beginning of 2016. During the year of 2015, Mihua Rural Commercial Bank had a rapid development, and therefore many opinions and measures the thesis offered is a bit of lagging behind when we are reading now.Due to the restriction of research methods and credit data, on the one hand, this thesis is not deep in analysis of reasons from credit risks, on the other hand, the consideration of pressure factors of real estate mortgage loans is not very thoughtful.