Research On Credit Risk Management And Prevention Of Hunan Branch Of China Construction Bank

Credit risk is a key issue of great concern to the banking industry and the entire financial industry.Since 2016,China's economy has entered a “new normal” of slowing growth.Under the supply-side reform background,the pace of economic restructuring has accelerated,and some industries have experienced overcapacity.Changes in the external macroeconomic environment have had a certain impact on banking credit risk management.China Construction Bank is one of the four state-owned commercial banks in China and has a large operating share in the industry.The total assets of China Construction Bank's Hunan Branch are the first in the financial industry in Hunan.Therefore,the study of its credit risk management is of great representative significance for the study of credit risk management and prevention of commercial banksBy combing the domestic and foreign scholars' research on the credit risk of commercial banks,this paper systematically expounds and analyzes the research focus of credit risk,and detailed introduces the basic concepts of credit risk,main types,measurement methods,control measures and the specific risk management measures of the three foreign advanced banks(Barclays,Citigroup and Deutsche)and the specific requirements of the new Basel Capital Accord for credit management.Three internationally recognized credit risk measurement models,Credit Metrics model,KMV model and Credit Risk+model are introduced.In this paper,the specific case of China Construction Bank's Hunan Branch is described in terms of credit management scale and credit structure.The credit management system and credit approval process of it,and also the credit risk management mode reform and it specific problems are described in detail.Based on the Credit Risk+ model,firstly,we calculate the VaR of the portfolio with China Construction Bank's Hunan Branch under different confidence levels.It was found that VaR value accounted for a higher proportion,and the order of contribution to credit risk was Service loan> Industrial loan> Real estate loan >Personal loan> Water Conservancy?Environment and Public Facilities Management Industry loan>Construction industry Loan> Agricultural loan.Then,we analyze the gap between China Construction Bank's Hunan Branch and three foreign advanced banks form the aspects of credit management concept,organizational structure management and credit quantification technology.Through qualitative and quantitative research on credit risk of China Construction Bank's Hunan Branch,this paper lists the existing problems of Hunan Construction Bank,we can finally put forward some preventive measures and management suggestions for its credit risk management,such as,improve the stable credit risk management concept improve the quality of credit management employee,further improve the credit risk prevention mechanism and optimize the internal and external credit management control system.