Research On Risk Prevention And Control Strategy Of Credit Business Of M Bank Hohhot Branch

With the transformation of China’s economy from high-speed growth to the "new normal" of medium-high speed and highquality development,in the face of economic downward pressure,credit risks occur from time to time in the credit management of commercial Banks,resulting in the growth of NPA(Non-performing Assets),which to a certain extent swallowing up the profits of commercial banks.It is particularly important to strengthen the prevention and control of credit risks in order to gain more development space in the fierce competition and effectively reduce the occurrence of financial risks of commercial banks.In this paper,the M Bank Hohhot Branch is taken as the research object,the main line of which is to propose,analyze and solve problems,and the concept of credit risk is started with the methods of summarization,literature review and case analysis.Firstly,through analyzing the basis of the credit business of M Bank Hohhot Branch and its risk prevention and control status,the main problems and causes of risk prevention and control were deeply analyzed.Secondly,through the use of PEST method andFive Forces Model,M Bank Hohhot Branch was objectively analyzed.The macro environment and industry environment in which the company’s credit business is located summarizes the opportunities and challenges faced when performing risk prevention and control tasks.At the same time,on the basis of analyzing the resources and capabilities of the company itself,it extracts the comparative advantages and disadvantages when practicing the risk prevention of the bank’s credit business.Finally,using SWOT analysis method,the overall strategy of risk prevention and control of credit business of M Bank Hohhot Branch was clearly put forward:the M Bank Hohhot Branch should be guided by macroscopic financial policy,and focus on the key industry and the fields of funding shortage;to optimize the structure of direction of corporation credit.In the meantime,it also should deepen the system innovation of risk management,to establish the durative system of risk management,to furtherly promote the comprehensive ability of risk management;to realize the steady development of corporation credit under the premise of assure of the credit assets.Meanwhile,the specific strategies of the bank’s credit risk prevention and control is highlighted: firstly,using technology to improve the risk prevention and control system;secondly,innovating loan portfolio risk management,adjusting credit structure;thirdly,focusing on squeezing the bad debt.and last,the bank should adequately utilize RAROC to optimize existing risk assessment system.On this basis,the corresponding implementation of the strategy is proposed.Through the research in this paper,on the one hand,it can clarify the strategic direction and strategic focus of the risk prevention and control of the corporate credit business of M Bank Hohhot Branch to ensure the smooth development and expansion of the business;on the other hand,it can also provide reference for other commercial banks in the area of the risk prevention and control.