Southwest City Commercial Bank Credit Asset Management Study

Credit assets are the main assets and revenue sources of China's commercial banks at present. ensuring quality of credit assets is the key to ensure the safety, liquidity and efficienc of commercial banks. Southwest commercial banks, due to the impact of historical and other related causes, started late and the overall level of credit asset management is not high. This paper attempts to analyze the general theory and study at advanced credit management experience of domestic and foreign banks, hope the credit management levels of commercial banks in the southwest region will be inproved.In view of the regulations and systems in respect of credit funds, banks in PRC only have very limited ability to adapt changes of circumstances. In such situation, banks in PRC should learn from foreign banks' credit risk management experience and techniques to improve their credit risk system, so that they can better manage the quality of credit and improve their competitiveness.This paper is based on the knowledge and understanding of the above issues. Based on the writer's solid experience in credit risk and the experience of foreign banks, the writer takes the view that there are 3 major areas to be considered in order to establish an effective credit risk management system. The 2 major areas are:1. To establish a systematic credit approval system for the purpose of improving the credit approval procedures, so that there can be a better balance between the credit risk and the relevant income;2. To establish an effective credit approval management system for the purpose of monitoring the approved credit, so that unacceptable credit risk can be detected and prevented.