The Study On Credit Risk Control On The Related Transactions Of Group Customer Of Xingye Bank

With the great development of Chinese market economy and the gradual establishment of the modern enterprise system, the group enterprise rises suddenly and become an important force to support economic development. At the same time, under the financial market background, the commercial banks will select group named as"big customers"as important development client for profit maximization. Banks will provide a variety of favorable terms, such as funds and lending rate and so forth. However, the commercial banks have a wrong and blind cognition about the group and group client credit risk. Besides, the bank's own risk management system , credit risk management and incentive restraint mechanisms are weaker and imperfect which will lead to multiple customer credit, excessive credit and inappropriate allocation of credit limits and so forth. This will bring huge risk to commercial banks. It has been a critical issue how to guard against credit risk of correlative transaction of group customers.This article introduces the domestic and foreign research and concept about credit risk control on the related transactions of group customer first. It is reached that related transactions of group customers lead to commercial banks'high credit risk by analyzing the mechanism of impact of group correlative transaction on credit risk. Then, the paper focuses on analyzing status and problem of risk control in credit business of related transactions of group customers for an improving motivation. On the base of analysis on risk control in Xinye bank in detail, we draw the experience in credit risk control of foreign group customers correlative business and improve the weakness in present credit risk from internal control mechanism of commercial banks, optimizing the credit group structure of group customer and setting up the external incentive and restraint mechanisms and so on to reduce information asymmetry. Finally, we propose to taking effective measures to strengthen the credit risk control on group customers and correlative enterprise.