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

The topic on how to avoid credit risk has long been the major concern for the financial institution and the monitoring departments all over the world. Along with financial globalization and the intensifying undulation of financial market, commercial banks all over the world have all been faced the unprecedented challenge. As the primary entity in our economics, the operation of commercial banks is a decisive factor in affecting the whole economic trends. But at present, the most prominent problems of our country's commercial banks are the poor credit assets quality and the high proportion of bad loans, which would constitute the biggest potential risk for commercial banks. All these problems partially owe to our current economic mechanism indeed, but the most important reason is lack of strict and scientific credit risk management. So, how to control credit risk effectively to improve credit quality has been an important topic in academic circles and banking industry. As a result, reforming on our country's credit risk management mechanism should be taken on the agenda.This paper holding this hot spot closely, concentrates on the search more comprehensively and thoroughly on the consummation of risk management system. First, through utilization of information economics theory and system economic theory and on the basis of the theoretical analysis on credit risk production, the paper makes thorough and careful analysis on the present situation and the special origin of our country's commercial banks credit risk; Second, the paper elaborates the existing problems and origin from multi angles and multi levels; Finally, on the basis of some experience absorption from other countries, with regard to Chinese actual situation, we can comprehensively raise credit risk management level by using the modern credit default risk measuring method, allplying the scientific technician method, further strengthening the construction of internal control and constructing perfect system of exterior supervision.