Credit Risk Management Research For Bank Of Shanghai Hangzhou Branch

The growth of commercial banks is always accompanied with risks.Among all the risks including credit risk,operational risk,market risk,liquidity risk and legal risk,credit risk is the most fundamental fact in daily business.The booming of financial industry brings increasingly complicated environment foe commercial banks to survive.The success of a commercial bank requires it to be more professional when trying to balance business growth and risk control process.Successful risk control policy will not only contribute to the long-term growth of commercial banks,but also will affect the trend of Chinese economy.At present,overall credit risk management ability of commercial banks in China is at a low level,which means the risk prevention capacity is extremely weak when financial crisis come.Hangzhou branch,bank of shanghai,is now suffering a difficult time as other commercial banks here affecting by regional risk and impact of a security chain risk.In fact,in Yangtze River Triangle area where high-growth coexists with high-risk,credit risk has become a huge obstacle in business development of commercial banks.This article will give a overall analysis on the risk control frame and status basis on credit manage theory,especially focus on the problems in its current risk manage frame such as rating system,risk mitigation instruments and operational policies.By analyzing the whole risk control system,the author will figure out the developing methods for the bank such as to develop three layers of risk prevention system,to strengthen risk warning and risk mitigation measures,to establish a dedicated internal rating models,to strengthen the loan check system,so as to prevent risk,control the amount of NPL assets and finally to improve the capability of risk prevention.