Credit Derivatives Impact On The Credit Risk Management

Credit risk is currently the focus of business bank risk management. Credit risk transfer is an important and effective method during managing credit risk. Credit derivative occurred when credit risk management techniques developed a certain stage, in order to help commercial banks to transfer and avoid credit risk. Banks are re-acknowledging credit derivative value and function because of different performance between the Enron crisis and the subprime mortgage crisis. Under the new BaselⅡimplementation, fierce international competition and context of the subprime crisis, it will be meaningful for researching credit derivative.