A Study On The Reform Of Credit Risk Management System Of AB Bank

Credit risk is the major risk of bank. There is still a wide gap of credit risk management (CRM) between domestic bank and foreign bank. This paper studies the international advanced theory of CRM and the development path, analyzes the problem of CRM system of AB bank, researches the reform of CRM of AB bank by combining the outside operation environment of AB bank with inside status of AB bank.This paper consists of five chapters. The first chapter introduces the research background, the meaning of study, the study idea and the method. The second chapter presents the primary content of CRM, including the implication of credit risk statistics, management method, historic development path and the requirement by the new Basel capital accord. The third chapter analyzes the status of AB bank. The fourth chapter gives the scheme how to reform the CRM system. The fifth chapter is the conclusion.The conclusion of this paper include: 1) The object of CRM is capital at risk, and the goal of CRM is to maximize the capital return adjusted by risk. 2) The level of CRM of commercial bank consists of seven phases which developed asymmetrically. 3) Since the weakness of CRM system under the pattern of former extensive operation appears, the reform of CRM system should be performed as soon as possible to adapt the changes of outside and inside environment. 3) From the aspects of organization structure, credit police, credit process and system tool, AB bank should insist the way of capital constraint and drive the reform of CRM system step by step based on the enterprise strategy.