Research On Credit Risk Management Of Commercial Banks

As a large state-owned joint-stock commercial bank listed in Hong Kong and the mainland,the credit business of the Agricultural Bank of China(ABC)is growing with the ever-changing financial market,and the business and financial situation of the clients are also changing with the macroeconomic situation.However,there are also many problems existed in the risk management model in the aspects of its efficiency and pattern.Credit business is a important way to make profit for commercial bank.The credit business accounts for nearly 70% of the entire asset business,and its interest income accounted for about 80% of total revenue,Therefore,credit risk is one of the risks faced by the Chinese commercial banks.Since the reform and opening up,China's commercial banks continue to explore in the aspect of the credit risk management,and obtained some certain achievements.However,compared with the advanced foreign banks,there is still a big gap between Chinese banks and foreign banks.Under the background of interest rate liberalization,China's commercial banks need to strengthen the credit risk management to obtain more profits by making use of the existing resources.Since credit risk runs throughout the whole process of credit business,it requires commercial banks to create a good credit risk management culture,so that every credit professionals will set up a solid consciousness of risk.The article takes D Sub-branch,Jiangxi Branch,ABC as a example to study the credit risk management.We find that there are many problems in it,such as the low quality of credit asset of stated commercial bank,the single mode of credit risk management,seldom credit risk management tools,lack in scientific credit culture,low-qualified and non-professional staff.This article divides into six parts.The first part is Introduction,which mainly introduces the research background,significance,research thought,research method,content and outline.The second part mainly describes the current situation of the credit risk management of Chinese commercial bank.The third part reveals the problems existed in the credit risk management of Chinese commercial bank based on the D Sub-branch,Jiangxi Branch,ABC.In the fourth chapter,the author puts forward some advanced management experience through learning from foreign commercial bank.The fifth part proposes the improvement suggestions to solve the problems existed in the D Sub-branch,Jiangxi Branch,ABC.The last chapter is a conclusion.