A Study On The Credit Risk Management Of Our Country's Commercial Banks

Credit risk is one of most important source of risk that our commercial banks face, and it constructs the main part of risk management. So strengthening the measurement and management about credit risks is of much significance to our commercial banks.Looking from the international environment, the international finance system is experiencing the huge transformation, especially in the field of credit risk measurement and management. With the financial market deepening and the objective need to cope with complex situation, the ways of risk measurement and management transit gradually from the qualitative analysis to the quantification management stage, and the risk control transforms along with it by the static management to the dynamic direction, the western commercial banks develop and make use of the modern risk management model to monitor and control credit risk. Complied with this trend, the international supervising organization published officially "New Capital Agreement" in June, 2004, allowing the use of internal quantification model for some international commercial banks to manage the credit risk, and formulated relative supervising regulations to enforce the quantification standards. In total, the credit risk quantification management is the current trend, which adapts to the subdivision of the financial market and the need of effective risk management.Regarding the present situation of the banks, based on the domestic view, on one hand, that the commercial banks' scale on middleman business is small, the market share about off-balance sheet businesses is narrow, and the financial products' innovation is of insufficiency, has seriously restricted the improvement of profit pattern in the commercial banks which is sole and abnormal, so that our commercial banks rely heavily on the credit profit's growth. On the other hand, the entire bank system appears increasing difference for the loan to deposits, plus the inefficiency of the difference capital using, which means the return rate of investment in the money market not only lowers than the loan interest rate, but also approaches or even lowers the average debt cost, the result is that the massive currencies deposit is detained in the commercial bank system, which cause the commercial bank to shoulder large amount interest disbursement. Thus, the present profit pattern set a higher standard for commercial banks to grant the loans. That is to say, the credit risk relates directly to commercial bank's competitive ability,the bank continually and the stable development.Melting into the global market becomes the direction for our commercial banks'...