Research On Credit Risk Management Of The Commercial Bank

As participating into WTO, our country has become an improtant member in the international economic orgniaztion. Both our banks and foerign banks open many branches in each other's countries in order to broaden the business scales. Because our capital markets are still a "fresh man", when many enterprises face liquity problems, they tend to borrow the money from the bank, lead to our banks face more credit risks. To keep developing more smoothly in the competitive enviroment, our banks need to find its comparative advantages and improve credit risk manangement.The credit risk means that the borrower can't repay both principal and interest or he doesn't like to repay, then making the bank losses. The core idea of the essay is that constructing a Logist model on rating the different enterprises by referencing in ZETA model and collecting our enterprises newest data, and provide some sugestions for our banks to manange credit risks.The essay includes six parts. The first part is that introducing the definition,characters and management methods of the credit risk. The second part is that reviewing both forigen and domastic methods of credit risk management in order to provide some theoretical basis for the essay. The third part is that analyzing the intrinsic mechanism and reasons of the credit risk in our banks, including Information asymmetry,the supplyment more than the demand in the credit market and uncertainty and so on. The forth part is that analyzing the important problems on credit risk managements in our morden banks, inclduing the Non-performing loans,Capital adequacy ratio and loans on industry concentration. The fifth part is that analyzing the Credit Risk Management of the Commercial Bank on the Basis of Logistic Model. The essay choose 6 most efficientive arguments from 35 indicators, then testing the accuracy of the models, finding the outcome is 90.4%, proving the reference value of the model to our banks. The last part is that providing some suggestions on improving credit risk management for our banks from both internal supervision and external enviroments perspectives.