The Influence And Countermeasures Of Guarantee Chain On Risk Management Of Commercial Banks

The current macroeconomy is affected by domestic and foreign policies,markets and other factors,and the economic growth rate is slowing down.In this context,the changes in the market may affect the decision-making of financial participants.A large number of Mutual guarantee and joint guarantee relationships in corporate debt can quickly spread the crisis of one or several enterprises along the guarantee chain,forming a chain reaction and making the risks accumulate in the guarantee chain.The emergence of enterprise debt default will not only lead to bankruptcy,it will also increase the risks that other companies within the same guarantee chain facing.Commercial Banks and other financial institutions will face a huge credit risk exposure.If the guarantee chain risk is not properly managed,it will not only endanger the security of banks' credit assets,but also have a huge impact on the regional economy and financial stability.Since the beginning of 2017,a number of firms went bankrupt due to capital chain rupture in Shandong Province.Business failures and the continuous growth of non-performing assets in Banks is because that the risk of default is spread between enterprises through the guarantee chain.Some enterprises take a lot of debts through guarantee and other means in order to transform and upgrade from traditional manufacturing.However,the failure of investment strategy has caused the capital chain rupture.The occurrence of debt default makes other enterprises in the same guarantee chain affected by the collateral relationship.In addition to the problem of the enterprise itself,the excessive credit granting of the financial industry to the entity enterprise is one of the reasons which causes the enterprise to be over-debt and over guarantee.According to CBRC Shandong office,bank loans account for more than 80% of corporate debt financing.Commercial Banks issue a large amount of guarantee loans to enterprises.But they have many defects in the credit risk management,which directly leads to the formation and risk of the guarantee chain.In order to guarantee the bank's asset security and strengthen the bank's credit risk management,it is necessary to study the method of commercial Banks to deal with the risk of guarantee chain.Based on relevant theoretical and empirical studies of predecessors in guarantee chain,this article points out the influence of guarantee chain on commercial Bank credit risk management,and uses ‘Tianxin group' guarantee chain crisis as an example.By analyzing the causes and responses of the debt defaults and bankruptcies,this article provides the countermeasures for commercial banks in the risk management of guarantee chain.The article is divided into six parts.The first part is the introduction,including the research background and significance,the research summary,the research content,the research method,the innovation point and the deficiency.The second part is the case summary of the Tianxin group guarantee chain event and the current situation of the guarantee chain and commercial Bank guarantee chain risk management in China.Firstly,the 15 successive bankruptcy reorganization events of Tianxin group and its affiliated enterprises in Shandong province in 2017 are explained in detail.Then this part shows the current situation of the guarantee chain and commercial Bank guarantee chain risk management in China.The third part is the influence of guarantee chain on the credit risk management of commercial Banks.This section describes the definition,characteristics,advantages and disadvantages of the guarantee chain,and analyzes the influence of the guarantee chain on the credit risk management of commercial Banks.The fourth part is the cause analysis of the guarantee chain.This section analyzes the cause of guarantee chain from the angle of law,market,enterprise,bank and government.It also analyzes the formation reason of the guarantee chain of Tianxin group and the disposal measures of the guarantee chain of Tianxin group.The fifth part expounds the specific measures of the risk management of guarantee chain in commercial banks,including the identification,measurement,evaluation and solution of guarantee chain risk.The six part summarizes and provides the suggestion of risk management of guarantee chain for commercial banks.