Research On Credit Risk Management System

In recent years, China's banking industry has made great progress, but the credit business is still the main source of incoming for banks. In this case, the primary risk of banks that are facing is credit risk. Credit risk relates not only to the banks' survival, but also to social stability. China's bank credit risk management system is still in the initial construction phase and constant financial scandals and the huge bad debts are common related to defective credit risk management system. In this paper, I develop a set of effective credit risk management system which has a strong practical significance.This paper analyzes the domestic commercial banks credit risk management status and background, and then introduces the radar chart of five parameters analysis and Logistic model technique and their significance and role on the credit risk management. Next, a detailed enterprise credit risk management system needs analysis has been done. By comprehensive using of Java language and Struts and Hibernate framework technology, I design a credit risk management system through the idea of separation of powers. In this paper a detailed design and the realization process are given.In this system, moral hazard and risk operations are prevented from the beginning through the checks and balances among four major permissions of common credit business needs. On the other hand, enterprise risk management can be realized by obtaining radar chart and default rate on analyzing the five parameters and Logistic model calculation in the inner system through inputting the enterprise information via the client manager. Next, we can predict the overall risk of bank loans by examining the distribution of bank lending funds. In addition, in the loan approval process, monitor can examine various aspects of the approval process to challenge the results of the examination and approval. At last, you can check the loan history after the loan has been approved. By doing all this, banks can avoid moral hazard on the internal and economic risks on the external.