Our Country Commercial Bank Credit Risk Management Problems And Countermeasures

At the end of 2008, the global financial crisis which was triggered by the US sub-prime crisis have caused the economic slowdown. This forces the financial sector to further consider the prevention and management of risk. The major problem of the US financial crisis is the credit loss caused by both the credit risk and market risk. This shows that it’s time for the bank to reconsider the bank risk management. In addition, financial literature also reflect that risk management is a major problem for the contemporary, just as Nobel laureate Merton said that the US financial risk management is one of the three pillars of modern financial theory. In a long time,the banks focused on credit risk which is the key of the risk management. Theorists and practitioners did a lot of work on the risk management.Starting from theory and concept of risk management, this paper firstly reviews and analyses the formation of risk management, gives definitions to the risk of commercial bank and other related terms.After analysing Administration System of commercial bank in our country, the acticle summerizes the cause of risk, and expatiates the necessity of the management regarding to the recent development of theory. Owing to the importance of credit risk, this paper analyses current situation of the risk management of commercial bank in our country to find out the problem.The paper also list. some classic case of CMBC in the field, and gives advices on the risk management of commercial bank on the basis of experiences of CMBC.That is banks must found the reasonable frame of management and cultivate the advanced culture.At the same time, banks must establish a rational management structure and build a formation of an advanced credit risk management culture,which use of appropriate conditions of our country’s credit risk management tools and methods.However, technology is the key to strengthen as a platform for risk management techniques used in China’s commercial banks. At the same time not forget to improve the external supervision of commercial banks in China and strive to risk control in the bud.Moreover, although there are many studies, they foucused on the aspects as follows:internal control, external regulation and appliation of risk management techniques and seldom dicusses the cultivation of culture and the improvement of employee talent.So, this paper discusses the whole countermeasure.However, this paper just shows the thoughtful discussion.The real operation needs further reformation of commercial bank. We may have many problems during the process. The main direction of reaserch is that how to establish the system of risk management combining with the reality in China when taking international experience for reference.