The Research On The Credit Risk Management Of The Chinese Commercial Banks

Credit risk faced by commercial banks is a form of risk that is the oldest, most importantand most difficult to control, and it’s also the most important cause of bank failures. Seriouscredit risk will not only endanger the survival and development of commercial bank, but alsoaffects the healthy development of a country’s economy, and even affects the stability of theglobal economy, so credit risk management issues of the commercialbanks have been attached greatly by all countries. However, the credit risk management of ourcountry falls behind the international advanced level largely. Therefore, I analyze theproblems of credit risk management of Chinese commercial banks considering the currentdomestic and international economic conditions. It is an effective way of preventing theoccurrence of the credit risk to learn from foreign advanced managing tools and controllingmeasures. Meanwhile, it’s important for our country to reduce the expected andunexpected losses of credit risk and to ensure the stability or development of the nationaleconomy.In this thesis I introduce the theory and research results of credit risk managementand analyze the current situation of credit risk of Chinese commercial banks in terms of thequality of assets, the distribution of banking share and concentration of bank loans. Then Ipropose the major problems in the credit risk management in China, concerning credit rating,credit metrics, information systems, the transfer of credit risk and credit culture. In addition, Isum up experiences of the international advanced methods in credit risk management ofcommercial bank and draws some inspiration from the organizational system,the quantifymodel and other aspects in this thesis. Finally, I derive the experiences and propose thereasonable measures and recommendations from the control of internal environment and theimprovement of the external environment to China’s actual situation. The methodscan improve and enhance the level of credit risk management, in the purpose of adaptingto the new requirements and new trends of the New Basel Capital Accord on credit riskmanagement and improving the international competitiveness ofChinese commercial banks.