Research On Risk Control Of Personal Credit Business Of Hefei Branch Of CITIC Bank

In recent years,a series of policies stimulating further development of retail credit business were promulgated by China's government,therefore,it is now the best time for various commercial banks to develop their credit business.Consequently,the commercial banks in all districts of Hefei,Anhui Province regard personal credit business as a new "starting point" for further business development.Under the circumstance mentioned above,the growth of the personal credit business in the branch of CITIC Bank which located in Hefei has been rapidly promoted.At the same time the commercial banks are taking advantage of the huge retail and cross marketing opportunities,they are facing various potential risks in the developing process of business,which would cause economic or reputation loss to a certain extent to the banks.Therefore,how to carry on effective risk management of the personal credit business is a common question which each commercial bank needs to face at present.This paper chooses the personal credit business of the Hefei branch of CITIC Bank as a case.Firstly,it introduces the current situation of the personal credit business of Hefei branch of CITIC Bank of China,which are as follow:the business scale grew rapidly,the number of retail customers grew steadily and the non-performing rate of personal credit assets gradually declined.It can be seen through the comparative analysis of the personal credit business of CITIC Bank,Hefei branch with other branches of CITIC Bank of china and joint-stock banks in Hefei that such problems are existing in the personal credit business of the Hefei branch of CITIC Bank,China:the development structure of the personal credit business is not balanced;the business development of different branches of the same bank in the same city is not balanced;the comprehensive management ability of a loan business customer needs to be improved;the quality of personal credit assets is lacked of control capability.Secondly,it analyzes the main risks that Hefei branch of China CITIC Bank is currently facing in the development process of personal credit business and their causes,which are mainly risks lying in partners,risk lying in the borrowers and risk in internal management.At present,there are still many problems that Hefei branch of China CITIC Bank has in risk control of personal credit business,which mainly include:the process of risk control and business requirements do not match;the risk control measures haven't been taken into effect thoroughly;the management mechanism is not perfect;the three-party cooperation mechanism is not perfect;and the assessment mechanism is faultiness.Finally,the paper discusses the concrete measures the Hefei branch of CITIC bank takes to improve the risk management of personal credit business,which are as follow:First,improve the operation process of personal credit business through the establishment of the sane loan business processes standard and a unified risk approval authorization process;second,improve the risk monitoring system of different loan links through standardize the pre-investigation operations of loan business,execute the loan review system strictly,and improve the inspection system of post loan;third,implementing the pledge access mechanism,and improving the pledge management responsibility system;fourth,improve the dynamic management mechanism of partners through establishing and improving the mechanism of access,management and withdrawal of partners' channels.fifth,improve internal innovation and evaluation mechanism of the personal credit business through the establishment of an incentive business innovation of operation mechanism and a reasonable,effective system of rewards and penalties.