Research On The Credit Risk Management Of China Of Power Finance Co., Ltd

Nowadays banks play a leading role in China financial system, with the credit business becoming the major source of commercial banks revenue, credit risk becomes the primary risk confronting commercial banks. As the same time, increasing complex external business environment is challenging the risk management techniques and level of china's banking industry which opened on December 12, 2006. Therefore, China theoretical research on credit risks have got many achievements, while banks also do some practice in order to sound our risk management system, and reference developed countries' experience in order to enhance the level of our countries loan risk management.As the same as commercial banks, the risks of financial, especially loan risk could be influenced by macroeconomic factors, including government policies, laws and microeconomic factors, including corporation structure, internal controlling system and personnel quality. But, financial companies have some characteristics because of their different clients and operations. Financial companies manage loan risk still by the same methods of commercial banks because of the lack of experience and the obstacles of lam and policy. Therefore, it's urgent for financial companies to establish effective loan risk management systems based on their own characteristics.This article, looks back and researches the domestic and overseas theories about loan risk management by criterion-analyze and demonstration-analyze. Then it summarizes the features and essence of China Power Financial Company's loan risk and try to find the reasons which cause the risks. Finally, the author puts forward some certain countermeasures and systems about resolving upwards loan risk-prevented problems, and hopes this research could perfect China Power Financial Company loan risk management systems and make the company develop more healthily and quickly .