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

The credit business is not only the traditional business of Commercial banks, but also the core business. Credit risk is the main risk what the commercial banks in different countries confront. For China's commercial banks making credit asset as the main allocation asset, credit risk management capability is particularly important. The New Basel Capital Accord, introduced in 2004, suggests the new ideas for the bank risk management and the standards, techniques and system requirements of the comprehensive bank risks management, which provide the reference for China's commercial banks with the level of credit risk management relatively backward and provide a reference from, and also poses a severe challenge.Based on the New Basel Capital Accord, it is a complex and systematic project to improve the level of credit risk management of China's commercial banks, so we need an effective credit risk management system to protect. The Enterprise Risk Management (the integrated framework) issued by COSO provides guidance for establishing and perfecting the credit risk management system of China's commercial banks.The paper, based on the spirit of the New Basel Capital Accord and the core ideas of COSO Enterprise Risk Management Framework, explores the construction of China's commercial banks on credit risk management system. First, this paper simply introduces the basic framework of the New Basel Capital Accord and features, and analyzes the requirements of new agreement on the bank's risk management and its impact on the banking industry. By means of the analysis of the current development of China's commercial banks and the deficiencies, the paper, suggests the approach of China's commercial banks following the New Basel Capital Accord that is the construction of the credit risk management system. Second, through the overview on the core content of COSO enterprise risk management framework and based on its core ideas, the paper describes the basic ideas to design the credit risk management system of China's commercial banks. Finally, the paper proposes the specific content of the credit risk management system of China's commercial banks facing the New Basel Capital Accord on the basis of the design.