China's State-owned Commercial Bank Lending In Credit Risk Management

The four state-owned commercial banks(namely, Big Four) occupy over 50% domestic financial resources of china. Since established, four state-owned commercial banks have been providing strong credit fund support for native economic reform and development, and driving the native financial system reforming process. Loan business is main source of profits for native commercial banks. How to improve loan business will deeply affect the improvement and development of China financial system. However, the state-owned commercial banks'loan business has presented disappointed features: high risk and low quality, co-existing since 1999.For four state-owned commercial banks, the credit risk management is one of the most significant parts of the loan business and the biggest problem to be resolved. This article aims to find some practical methods to reform and optimize credit risk management structure of state-owned commercial banks. During my research process, I collected abundant relevant materials, combed the materials to abstract main clue, and also did powerful analysis with case demonstration, all of which will be reflected in the main body of this article.This article can be divided into three correlated parts: In the first one, it reviews the evolution history of the loan credit risk management of the four state-owned commercial banks, which rationally leads to the discussion of the loan credit risk management reform in the following part.In the second part, it listed the main problems our state-owned commercial banks facing, including: 1. Contradiction between loan credit risk management and loan business development becomes more serious; 2. The internal rating-based system is far from completion, so loan credit risk management is not efficient enough yet. 3. The current loan credit...