Risk Analysis And Mitigation Strategies Of Credit Concentration Of A Bank F Branch

In recent years,with the rapid development of China's market economy,the domestic financial industry ushered in the golden week period of development.As the vanguard of the financial industry,commercial Banks play an important role in the financial market and are also the important media of currency circulation.In China,the core segment of the profitability and development of commercial Banks is credit business.Its credit scale,credit asset quality and credit concentration are the core contents of credit business.In the early stage of reform and opening up,due to the strict management of the central government in the financial sector,there was no too fierce internal competition.Therefore,commercial Banks did not pay attention to the potential risks caused by excessive concentration of loans.With the continuous development of China's economy,the structural framework of China's financial sector has been changed accordingly,and the internal competition in the financial sector has become more and more fierce,and the nature of commercial Banks pursuing profits has become more and more obvious.Especially in the allocation of credit resources,they tend to put loans into relatively concentrated high-return industries or enterprises.In this context,the importance of the impact of credit concentration on the risks of China's commercial Banks is highlighted,and it provides a favorable basis for China's commercial Banks to fully and effectively allocate credit resources,adjust credit structure and strengthen the supervision of credit concentration.On the basis of reviewing the relevant literature,this paper elaborates on the current situation,connotation and causes of the credit concentration of commercial banks.Through correlation analysis and regression model,this paper quantifies the impact of credit concentration on risk.This paper also takes Bank A(City Commercial Bank)sub-F behavior as an example to analyze.In terms of content and structure,the author first classifies,identifies and measures the current risks of Bank A and Bank F Branch,and then collects and classifies the data from three dimensions:customer concentration degree of loan,customer concentration degree of area and customer concentration degree of industry.Secondly,the empirical analysis of the risk impact of the credit concentration of Bank A and Bank F Branch,including the design of variables,data screening,hypothesis presentation,model construction,empirical testing and empirical results analysis.Through the analysis of the credit concentration degree of Bank A and F Branch,and the risk impact of excessive credit concentration of Bank F Branch,this paper puts forward a solution to the risk of credit concentration of Bank A and F Branch in the process of operation and development.This paper uses regression model and correlation analysis to analyze the current credit situation of Bank A.It compares lengthways and horizontally from three dimensions:customer concentration,industry concentration and regional concentration.Through the analysis of specific loan data,the paper calculates the impact of credit concentration on bank risk and return.In the sixth chapter of this paper,we will draw a conclusion about the current credit concentration of Bank A and Bank F Branch based on the qualitative and quantitative results.Specifically,the reasons for the high credit concentration of Bank A and Bank F Branch should be solved by starting from the loan concentration of commercial banks in China,finding out the common problems,and then analyzing them according to the specific situation of Bank A.Secondly,the impact of credit concentration on risks and returns applies the same method to deduce the general problems to the specific A bank F branch,and concludes that the credit concentration is positively or negatively related to the risks and returns of A bank F branch.Finally,through the analysis of the causes of the problem,followed by the impact of the problem,the final solution to the related problems.