Loans Of The Commercial Bank Credit Risk Control

Risk management before loan is the essential part of banking business.At present, bad asset rates in our commercial banks are mostly high, and creditrisk is the main financial risk that our commercial banks are exposed to. Thekey problem that whether banks can exist and win in heat competition is abank's ability in managing its credit risk. So, to enhance credit riskmanagement is the urgent task that our commercial bank should face.Based on carefulness analysis of historical as well as interior andexternal reasons of loan and lend risks happening in commercial bank in China,and analysis of economical circumstance, with deep analysis of status of loanand lend risks in commercial bank in China, the paper indicate that our countrycan't take force measures to manage loan and lend risks in commercial bankby means of policy and don't adequately evaluate the credit. And the systemof management risk, insurance and law in China isn't perfection. Theenterprises which are changing their finance system have trouble to besupervised. The last chapter in this paper discusses the significance andcourse of analysis on credit risk, with comments on financial ratio analysis,life cycle analysis, legal analysis and non-financial analysis.This thesis discussed the essentiality and method of the credit riskcontrol.Before the bank lend money to the company, by using several legal,management & financing theories. In now days,about 70% of the bank operationis credit assets.The badness assets of the bank is too high to control.Toimprove the controlling of credit risk is an important method to help thebank.It is the most important thing to control the credit risk before the bankdecide to lend money to a company.