Research On The Effectiveness And Improvement Measures Of Risk Management In JT Bank’s Credit Business

In recent years,China’s economy has entered a period of "new normal" from high-speed growth to medium-high-speed growth,economic restructuring tends to optimize,and power conversion between old and new,the pressure of credit risk faced by commercial banks has increased dramatically.Risk management of credit business not only affects the operational effectiveness of commercial banks,but also relates to the stability of the national financial system.Under the "new normal" of the economy,JT Bank is facing the rising rate of non-performing loans and the declining trend of interest income growth.Improving its risk management ability is also an urgent need for JT Bank to cope with the industry competition.Based on the above background,this paper introduces the modern portfolio theory and constructs a new method to measure the efficiency of commercial banks by combining the effective frontier boundary and capital market line.Based on evaluating the risk management of major commercial credit businesses,it finds the benchmark Bank of credit business risk management and draws a conclusion of JT through comparative analysis.The specific problems in risk management of credit business of JT bank are concluded,and the pertinent improvement measures are put forward,so that JT bank can improve the effectiveness of risk management,cope with the new situation and improve its competitiveness.The main research results of this paper include the following aspects: Firstly,a new bank efficiency measurement method is constructed by introducing modern investment theory to evaluate the effectiveness of bank credit business risk management.Traditional commercial bank efficiency measurement methods ignoring the financial characteristics of commercial banks.This paper combines the effective frontier model and capital market line to construct a new method to measure the efficiency of banks.The distribution of relative efficiency of risk management of major commercial banks in 2011-2016 is obtained,and a benchmark bank with high efficiency is found.Secondly,through comparative analysis,we find out the deficiencies of JT bank credit business risk management.Through five important aspects of risk management in credit business: risk management framework,risk management process,risk management measures,risk management tools and risk management strategies,this paper compares JT bank with GS bank and ZS bank and finds out the problems in risk management of JT bank’s credit business.Finally,aiming at the problems in risk management of JT bank’s credit business,this paper discusses the improvement strategies of effectiveness of risk management of JT bank’s credit business,including: Improve the independence of risk lines;promote the construction of risk management information system;carry out differentiated risk process management;improve the training input of risk managers;deepen the use of risk management tools;improve the credit business model and structure.The purpose of this paper is to provide suggestions for JT bank credit business risk management improvement and hope to provide reference experience for other banking institutions to improve credit business risk management.