Research On Group Customer's Credit Risk Management For M Commercial Bank

With the intensifying competition in recent years,the operation of a single enterprise has been unable to meet the complex market demand Many enterprises began to expand collectivization.Different from non-group enterprises,the increase in scale and business lines of an enterprise group has made the group's profitability increased.And the enterprise groups are facing more complex challenges.Because group companies often have strong capital strength and strong operating capabilities,they are the key customers for commercial banks to develop corporate credit business.In order to expand the scale of corporate loans and improve the profitability of credit business,commercial banks tend to tap more group customers.However,due to the complex equity structure of group customers and the more concealed connected transactions,it is more difficult for commercial banks to identify their risks,which may lead to greater credit losses.In order to avoid large-scale collective customer credit losses,commercial banks need to focus on the credit risk of group customers and raise awareness of credit risk preventionBased on a review of domestic and foreign research literature,this article clarifies the definition of group customers and types of group customers in commercial banks based on theories of information asymmetry,transaction costs,and risk limit management.Then,it analyzes group customer's credit business of M Commercial Bank and its status of risk management,including M Commercial Bank's group customers,pre-loan review status,post-loan management status,risk management processes,etc.On this basis,the credit risk management's problems of group customers is identified.It found the identification of group customers' pre-loan risk for M Commercial Bank is incomplete The risk rating and credit limit verification of group customers is incomplete.Information sharing and risk early warning for group customers are not in place.These are mainly caused by asymmetric information between banks and enterprises and unscientific credit risk management for M Commercial Bank.Finally,this paper proposes the principles and top-level design of the credit risk management of M Commercial Bank's Group customers.And it proposes suggestions on group customers' credit risk management from three stages centre on process of the loan to solve the identified problems for M Commercial BankThe conclusions of this study are of practical value and guiding significance for M Commercial Bank to improve the level of credit risk management of group customers,reduce the group customer credit risk,increase the scale of group customer credit,and improve bank credit profit.The research has certain practical guiding significance for improving the risk management level of the group customers in the entire commercial banking industry and reducing the credit risk of the banking industry.