Explore The Credit Risk Management Of Commercial Banks Under The New Normal

Commercial bank is one of the most important financial institutions in our economy and it plays an important role in the healthy development of national economy.Modern banking is a high-liability and high-risk industry which mainly operates currency lending and settlement as well as credit.It is different from other enterprises and it operates liability and makes profit mainly by the way of accommodation of fund.This feature makes commercial banks must regard risk management as the most important part in its operation and management.As commercial banks' most important assets business,credit business is full of risk and credit risk management can not be ignored.With the steady development of our country after the reform and opening-up policy,our banking industry underwent an institutional reform and obtained a rapid development.Especially during the past decade,banking industry benefits most from the flourish of Chinese economy as well as the shareholding reform of state-owned banks.External economic environment and internal reform lay a good foundation for the rapid development of banking industry.The assets of our banking industry expand quickly and its profitability continues to grow.However,our economy shows weakness after rapid growth in the past thirty years.It turns into medium-high speed development from high-speed development in the past and the economic structure is constantly optimized.Therefore,the power of economic development is changed fundamentally.Economic growth slow down makes the outbreak of accumulated risks in market and this leads to credit business risks of commercial banks continue to grow.In recent years,both non-performing loan ratio and non-performing loan balance tend to increase and they lead to the falling of commercial banks' operating profit.And they even have a bad effect on the healthy development of our economy.Therefore,the exploration of commercial banks' credit risk management style in China's New Normal has important theoretical and practical significance.Commercial bank credit faces risks that result from economic downturn,Internet finance,interest rate liberalization,financial disintermediation and so on.This thesis analyzes the challenge and opportunity of commercial banks in China's New Normal from the perspectives of the basic theory of commercial banks ' risk management,the credit risk management practices of commercial banks at home and abroad and our financial new normal.This thesis takes the debt crisis of China Huishan Dairy Holdings Company as an example and analyzes the formation,development and causation of this event.The disadvantages of commercial banks' credit risk management in China's New Normal are exposed and reasonable suggestions for our commercial banks' credit risk management are put forward.