Commercial Bank Credit Risk Management

The credit risk management has been becoming among the most paramount and challenging areas in the commercial banking risk management since 1990's. Commercial bank's credit risk exposure multipled and the essence became more complex along with the intricate financial market and the developing derivatives. The banking need a type of perfect or complete risk management system and scientific risk management method. As to china, the financial market liberalization is in the first stage, the loan is still the overwhelming biggest portion of the whole asset, as a result, the riskiest thing commercial banks are facing is the credit risk. All the financial scandals as well as the huge nonperforming loan arose from the credit risk. Therefore, this article is dedicating to research the idea, system and technology in terms of credit risk from reality to being foreseeing.In the chapter 1, the meaning, the framework and the main creative points of this article have been discussed.In the chapter2, we will be looking back the history of western credit risk management. On that side, we can separate the history into 4 stages: asset risk management, liability risk management, asset & liability...