Research On The Application Of Credit Risk Mitigants In China's Commercial Banks

Risk is always accompanied with benefits in the financial market,and the credit risk is regarded as a type of risk that appeared earliest among all the financial risks.It's particularly notable in commercial banks that all over the world.So a variety of credit risk mitigation tools emerged to meet the need of credit risk management and then grew up rapidly depended on its unique advantages and has became the greatest innovation in the financial market in 1990 s.In the subprime crisis in 2007,credit derivatives became highly controversial,but its status in credit risk management hadn't been trembled.Instead,relevant departments started to introspect actively and complete laws and regulations further more.At the same time,China gradually began to pay more attention to the increasing size of credit risk in commercial banks or other financial agencies and research credit derivatives.In 2010,NAFMII issued a guide to create CRM(Credit Risk Mitigants),Chinese credit default swaps.CRM(Credit Risk Mitigants)has received much attention from multi-body since it emerged,but the trading volume was not very well.So this article pretended to analyze the definitions,features,principles and functions of credit derivatives and CRM(Credit Risk Mitigants)and deficiencies of the development of CRM(Credit Risk Mitigants)according to its development progress.Then selected data of American commercial banks to examine degree of credit derivatives influenced on the loan amount of commercial banks.According to draw experiences from American credit derivatives market to probe approaches to promote the development of CRM(Credit Risk Mitigants)in our country.