Analysis On Drawing On The Experience Of The Western Commercial Bank Credit Risk Management

As the primary entity in our economics, the operation of commercial banksis a decisive factor in affecting the whole economic trends. At present, the mostserious problems with home commercial banks are high proportion of bad loans,interest reclamation, low profitability and serious loss. All these problemspartially owes to our current economic mechanism, but the most importantreason is lack of strict and scientific credit risk management. With the entry intoWTO, west banks gradually enter into the domestic market, which will makecompetition among banks fiercer. As a result, reforming on our credit riskmanagement mechanism should be taken on the agenda.Due to more than one hundred years' practices, western commercial bankshave accumulated rich experiences in the aspect of credit riskmanagement. .Therefore, the essay first introduces about the characteristics andadvantages of the western bank credit risk management methods. Then, I gave adescription of the current problems the domestic banks face in this aspect.Finally, guided by the idea of "adjusting measures in different local condition"and with regard to our specific phase of the economic system transition and thesocial cultural characteristics, I design a timetable according to which we canefficiently drawing on the experiences of western bank credit risk managementmethods.