A Study On The Credit Risk Management Of Our Country’S Commercial Bank

"With the development of economic globalization, China’s economic situation is affected by the influence of international finance after China’s accession to the WTO and gradual opening to foreign economic. At present, China’s financial systems still give priority to the bank, and the bank’s main source of income is credit assets business, which occupies the proportion of total assets as high as70%.Then here comes the credit risk, as the bigger income to get, the higher risk to be assumed. Credit risk management, which is the critical content of the bank risk management, will influence the success or failure of the bank management directly. Commercial Banks occupy the main status in the financial industry, and also obviously play an important role in the market economy. In the current economic situation, it is necessary to strengthen our country’s commercial bank risk management and improve the commercial bank’s income to make sure the stability of economic development and financial environment. Therefore, the research on our country’s commercial bank credit risk management has theoretical value and practical significance.Commercial banks are the core of modern finance, in economic development play a very important role. The smooth functioning of commercial banks and healthy development is the cornerstone of the development of the entire social and economic stability. At present, the standard of our country’s commercial bank credit risk management is quite low, while the rate of bad loans is rather high, reaching1.1%in2010and1.0%in2011. As the new Basel Capital Accord produced, it puts forward new ideas to the bank’s risk management and standards of measurement, the technical methods and system requirements to the comprehensive risk management. This provides not only references but also severe challenges to our country commercial bank.Judging from the general overview of researches on the credit risk management of commercial banks from the major domestic and foreign scholars, it can be seen that Chinese scholars begin to do researches rather late in this area, but that does not mean that Chinese scholars’researches in this area are not as good as foreign scholars’ Firstly, a brief overview of the commercial bank credit risk management theory need to be set forth in four areas of the credit risk(definition, classification, characteristics and credit risk management methods respectively). Secondly, they analyze the status quo of China’s commercial banks credit risk management and explain the reasons for credit risk. Then they identify and measure the commercial in three aspects of bank credit, risk market risk and operational risk from credit risk, and empirically analyze the credit risk of2011China’s listed banks by using the example about credit risk management of China Citic Bank XX branch to come to a higher probability of default of the commercial banks. Finally, they put forward effective measures to control the credit risk of commercial banks in China based on the results from the analysis, mainly starting from the credit of the whole process, that is the loan before, the loan, the loan after, and propose to strengthen credit officers’ comprehensive quality and business knowledge, establish a sound internal mechanism and improve credit rating system and other measures to effectively control credit risk.