Study On Credit Risk Of Commercial Bank In China

With the continued acceleration of the process of financial globalization, financial role in economic development more and more, the rapid development of financial liberalization, rapid financial innovation. It is in this process of rapid development, the gradual relaxation of financial regulation, financial sector more competitive, all financial derivatives have emerged, leading to the outbreak of financial crises.Capital is the blood of the national economy, commercial banks are the heart of the national economy. Commercial banks in pursuit of profit as the goal to operate a financial assets and financial liabilities for the object of special business, not only have good quality, more importantly, also has the ability to resist risks. However, the process of commercial banks in operation, always faced with various risks. Credit risk is the Chinese commercial banks are facing one of the important risks and improve the level of bank credit risk management as an important issue facing China's banking industry. As the new Basel II international introduction and rapid development of derivatives, credit risk management is undergoing a revolution.Currently Credit Risk Management of Commercial Banks There are many problems with the economic reform and opening up further, the development needs of both internal and external competitive pressures, favored by commercial banks in China are required to resolve the potential credit risk, improve financial systems stability.Rapid economic development in China since WTO accession, its investment-led development characterized. Particularly in the 2008 financial crisis, investment has intensified to promote rapid economic recovery. As our country is to stimulate investment to deal with economic downturn, commercial banks may increase the risks. China's commercial banks risk management, particularly in credit risk management methods and technology is still relatively backward, must be able to improve management practices, improve management skills, must understand the Chinese commercial bank credit risk management problems, according to China's commercial banks development pattern and level of development, learn from foreign advanced management technology combined with the practical problems of China building reasonable and effective, in line with international standards, in line with our national conditions and management system and management system.This analysis is divided into four parts: the first modern commercial banks through the credit risk on the basic concepts and basic theory of description, to capture the overall credit risk of commercial banks, and then introduced the "New Basel Capital Accord" of new requirements that the New Basel Capital Accord of the three pillars: minimum capital requirements, supervisory review and market discipline. Second, master the basics in a comprehensive analysis of the premise of commercial banks in China the problems of credit risk and credit risk management and causes problems. The causes of our bank credit risk can be divided into basically two aspects, one is from the banks of external factors, mainly the Government's intervention and the reasons for the borrower; the other is from the bank itself, mainly because banking system of property rights issues and the bank's internal management, risk management techniques have lagged behind.Commercial Bank of China credit risk is primarily used for the IRB and the degree of credit risk measurement methods, although in recent years, China's commercial banks to credit risk management has begun the transition from empirical to scientific, commercial banks and the West, however, credit risk management technical methodology compared to the gap between the two is obvious.