Research On Evaluation And Improvement Of Credit Risk Management Capability Of A Bank

Credit risk is one of the major risks faced by commercial banks.In the current,our country is in a separate operation business structure,the capital market is not perfect,the credit business is still the main part of commercial banks,the credit risks from the credit assets become main risks faced by domestic commercial banks.As one of the largest commercial banks,A Bank has scattered,small and weak credit customer structure,a long chain and over broad organizational system,irrational allocation of resources and backward risk management awareness and tools,which are making credit risk management Working face more severe situation,and credit risk situation is also not optimistic these years.How to strengthen and improve credit risk management has become an urgent need,but the premise is to improve the current level of credit risk management capabilities of A bank,then to analyze the existed deficiencies.This paper attempts to import the capability maturity model and then construct acommercial bank credit risk management capability maturity model on the basis of the introduction of risk management and credit risk management of commercial banks.In this model,according to the actual situation of commercial bank credit risk management,by dividing the maturity levels,analyzing the corresponding key areas and key practices,constructing commercial bank credit risk management capability maturity assessment system,which including a set of target layer,criterion layer,sub-criteria layer and index layer.Subsequently,through designing and issuing questionnaires,obtaining data,confirming the index weight at different levels in the way of analytic hierarchy process,evaluating the assessment data in the way of fuzzy and comprehensive evaluation,this paper quantify the calculations to determine the A bank's credit risk management capabilities at the maturity level is "defined level."After the maturity level is determined,this paper analyze the weakness of A bank's credit risk management capabilities.Finally,the paper raise a reasonable and feasible recommendations to enhance the maturity of the bank.As the Business policy,it is recommended to fully utilize mechanism of credit risk appetite and further promote implementation of credit risk management culture;As the business processes,it is recommended to promote the intensification and refinement of the credit risk management and the control of business processes,improve the assessment of the accuracy and objectivity before loan;As the personnel and organization,it is recommended to establish the authority of the credit risk management,and to ensure the coordination of credit risk management department with other sectors;In the aspect of management report,the recommendations are to strengthen credit risk reporting utility and efficiency,and to strengthen the internal audit department advisory functions on credit risk management;In the aspect of processing method,it is recommended to improve credit rating and risk classification,and afterwards to resolve the credit risk standardized and disposal;In the aspect of system and data,it is proposed to strengthen Credit Risk Information System database quality,and improve the ability of predict risk in the use of utilization capacity of the system.