Credit Risk Management And Control Of Huaxia Bank Changchun Branch

Finance is the core of modern economy,and the main body of financial institutions in China are commercial banks—special enterprises operating and controlling risks,undertaking the loss from risks as well as obtaining its benefits.With the development of modern economy,the criterion to assess a bank has not only confined to the branches,scale and profit,but also the quality of bank assets and ability of risk-control which have become an important indicator for the community and regulators in evaluating the operation capacity of a bank.At present,facing China's gradual integration and domination of the direction of world economic development,its steady and slowdown trend in the growth of general economy,and the improvement of the financial market and internationalization,credit risks appear with more complex and diverse characteristics in the bank management.At the present time China's economic development is still in the transition period,and commercial banks as the medium of direct and indirect financing still play the leading mode in domestic financial market,therefore the credit risk has become the most important core risk to domestic commercial banks.In recent years,due to the internal and external environment change of credit risk,the defects in regional,industrial and internal control and some human management problems,non-performing loans and non-performing loan ratio of domestic commercial banks showed a steady double up situation.The reasons are perplexing: most of the bad loans are caused by the enterprise false reports and information,which provide an appearance with the credit conditions while actually without the conditions and lack of solvency—the first source of repayment is not guaranteed.Most of the credit problems are the access problems—congenital deficiency cannot be made up by postnatal nutrition;there are a small number of non-performing loans is caused by the bank credit management,not discovering the problems of enterprise management and solvency,not to take timely measures of credit withdrawal form.The quality of credit assets embodies the life of banks,and the joint-stock commercial banks are more vulnerable to risk because of their relatively small asset size,therefore the importance of credit risk management has been becoming increasingly apparent.The launch of the Basel Protocol III has also led to commercial banks to refine credit risk quantitative management mode,with enhancing credit risk management and credit quality as the basis,through the comprehensive risk management measures covering the whole business process,taking the connotation of high quality growth and lifting the control of credit risk to the bank strategic plane.With the above context,the paper takes the Changchun branch of Huaxia Bank credit risk management as a subject,trying to analyze the existing credit risk problems and reasons of domestic joint-stock commercial bank.Finally according to the above research and analysis,put forward the corresponding proposals and solutions to Changchun branch of Huaxia Bank credit risk management.This paper is divided into four chapters.The first chapter focused on related concepts,methods and the background of credit risk management.The second and third chapter,mainly introduced and analyzed the present situation and the existing problems of credit risk management in Changchun branch of Huaxia Bank.The fourth chapter summarized to put forward suggestions and solutions for current credit risk management of Huaxia Bank Changchun branch.