Research On Huainan Construction Bank Credit Risk

Since 1980s, the economic globalization and financial integration has widely spreader all over the world. With the rapid development of information technology, the financial theory and practice is undergoing constant reform, which brings new opportunities as well as the huge shock for the development of financial industry. The collapse of Barings Bank, the Southeastern Asia financial crisis and 2007 American credit crisis accelerated the turbulence of international financial market. The commercial banks and investment institutes in each country are confronted with the unprecedented credit risks. According to the survey of global bank crisis from World Bank, the credit crisis is the major reason for bank failure. Our national commercial bank don't perform well in credit risk prevention and control and has become great threaten to our national finance with the changing Market environment and increasing vitality of credit risks. Aiming at current status, the author do some researches and analysis on credit risks of Huainan Construction Bank in the hope of enlightening.The article first introduced the researching background, the concept and characteristics of credit risks as well as the theoretical researches and practices on domestic and overseas credit risks. Secondly it made some analysis and comment on the credit operating and risk management of Huai nan Construction Bank Y in recent years. Thirdly, the article also illustrated the root of credit risks in Huainan Construction Bank from its outward environment and interior bank system and meanwhile put forward the risk control policy of Huainan Construction Bank. In the management on credit risks, it emphasized the concept of risk management before, during and after the credit application. During the survey period before the loan, by making rational policies of marketing positioning and portfolio management and implement parallel operation etc before the loan to reduce the information asymmetry between bank and enterprises to protect against credit risks from the source. During the loan, the risks could be controlled in reasonably through specialization in loan approval and parallel operation in credit etc. After loan, the risks could be effectively resolved by improving the after-loan management system, after-loan parallel operation system and speeding up the disposal of bad loans etc. In the risk management, the concept of "people -oriented" will be consistently implemented.