Research On Post-Loan Risk Management Of NC Bank

Post-loan management refers to the whole process of credit management from loan issuance or other credit business to the recovery of principal and interest or the end of credit.Post-loan management is an important part of credit management.Since 2011,the slowdown in economic growth and corporate development difficulties have been challenging China's banking industry.It is particularly important for commercial banks to raise their credit risk management level rapidly and effectively.However,due to various reasons,post-loan management as an important part of credit management is not taken seriously in various banks.In this paper,the post-loan risk management of NC bank is taken as the object of study.Firstly,some concepts related to post-loan management of commercial banks are introduced.Then,based on the author's own work practice,this paper analyzes the current situation of NCB's post-loan risk management with comparing it with the excellent banks in post-loan management and finding out the problems as well as their causes of NCB's post-loan management by using case analysis and comparative analysis.The existing problems of NCB's post-loan management include: unclear responsibilities,shortage and mobility of personnel,lacking professional division of labor,emphasis on lending and neglect of post-loan management,unreasonable assessment and incentive mechanism,undefined process of post-loan management,ignorance of the important role of post-loan management in the relationship between banks and enterprises,impractical and non-systematic risk precaution mechanism,and lacking effective risk assessment methods,lacking real financial data and risk control policy and group.The causes of these problems include: a corporate strategy with much more emphasis on business development than risk management,the number and quality of staff lagging the pace of development,lacking cooperation and specialization,lacking information technology support,immature domestic business environment,and insufficient credit data.In the end,the author puts forward some proposals so as to improve the post-loan risk management of NC bank: establishing a post-loan management team independent of the business team;establishing a three-dimensional and multi-post-loan management organizational structure;establishing a system of performance management of post-loan management processes and improving the performance management mechanism of business units;establishing standard and detailed operational procedures integrating pre-loan,post-loan and in-the-bank-loan data;exploring value-added functions of post-loan management;speeding up information technology platform for post-loan management to provide a sound scientific support;using data indicator for precaution and risk measurement;setting up a simple precaution mechanism;constructing default probability using multivariate logistic regression model;calculating default loss rate using value and classification of loan collateral;establishing a two-dimensional risk rating system through default probability and default loss rate;establishing an industry risk monitoring mechanism;and establishing a specific system and process for risk control.The author presented practical proposals to improve NCB's post-loan risk management,having taken full account of the causes of existing problems of NCB's post-loan management.As NCB is a small and medium-sized bank whose shareholders are mainly private enterprises,its nature and ownership structure determine its organizational structure and development strategy to a certain extent.Given this limitation,the results of this study are not universal and may not be applicable to other Chinese commercial banks.