Economically Less Developed Areas Of Commercial Banking Firm Credit Risk Control Study

The lower quality and highly bad loan of credit assets in the commercial bank of our country has became the most hidden trouble of financial risk. Since 1999,our country has set up four mainly asset managing company who stripped the bad assets of four mainly state-owned commercial banks. Therefore, the credit management of the commercial bank in our country had improved significantly; the orientation and structure of credit had adjusted; the quality of new-adding credit had enhanced evidently; the bad loan had descend gradually; the methods of controlling the risk of the credit had ameliorated availability. But many credit risks, which exist in great corporation loan, are still prevalent in commercial bank of vast underdevelopment areas. Risks has influenced the normal operate of local commercial bank so hard that they exceed enormously that of the developed areas and some of them even threaten the survival of these commercial bank. As the foreign banks are coming, guarding against and defusing the risks of the bad loans has became the emergent task that the commercial bank in the underdeveloped areas need to research.Compared with the developed areas, the underdeveloped areas have a good many problems, such as the badly economic foundation, the narrow financially survival space, the single financing way, imbalanced supply and demand of funds, the lower continuable developing ability of financial institution, the deficient competition in the rural financial market, the unhealthy credit system and agency, the puny restriction of the credit environments, the abnormal relationship between the bank and the government, between the bank and the corporation, the inadequate protection to the creditor's rights of the bank, the difficulty to protect the creditors' rights of the bank etc. These problems have puzzled the local commercial banks and what they incorporate is a great deal of bad credits, which is the principal part in the corporation credits. For the different view to analyze, the corporation bad credits have the features as follow: 1) the amount and percentage of the bad credits of the corporation is great and high, 2) the short-term bad credits account for the most of proportion of the whole credits, 3) the bad credit is prevalent in the credit corporations, 4) the state-owned...