On Development Strategies For China's Commercial Banks Credit Derivatives Business

Credit risk is the main risk of the bank system. In the past, banks usually decrease the centralized credit risk of assert portfolios through risk decentralization. Due to various constraints, it is difficult for banks disperse the credit risk by separating the loan. The appearance of Credit Derivatives in the 1990s partly solved this problem. The credit derivatives market as a transfer of credit risk dispersion and effective tool in the international market in recent years has been rapid development, but it still in the exploring stage in China.This paper is tried to bring this new product into our country, and analyze the Credit Derivatives' developing environment and conditions of our commercial banks under the Financial Crisis background. Later, the paper try to discuss the product develop possibility in our country, what is more, this paper choose Credit Default Swap to make further application research. In content, this essay first illustrated the background and the research meaning of the Credit Derivatives, and then introduced the product concept, types, characters and functions. The Chapter 3 introduces the importance and developing possibilities of the Credit Derivatives in China; the Chapter 4 states the developing realties and limits of Credit Derivatives in Chinese commercial bank; the Chapter 5 tells us the development of the international Credit Derivatives, its role in the financial crisis and some helps for Chinese development; In Chapter 6, a developing strategy is given according to the status of our commercial bank, including:rules, laws and regulations, accounting and developing steps, Credit Default Swap is chosen as an example of our commercial bank development with the detailed designing progress. Last but not least, the developing possibility of the Credit Derivatives in Chinese commercial bank is concluded in the financial crisis background.