The Research On Credit Risk Management Of China Merchants Bank

With the constant improvement of our financial markets, the external operating environment of the commercial banks a huge change, China’s economic and financial reforms to speed up the process of market-oriented, the role played by the configuration of the market "invisible hand" of the social and economic life resources is growing. Commercial banks face transaction object, the original credit risk management approach has been unable to adapt to new problems and new situations, policy risk is not of commercial bank credit operations facing major risk, market risk, credit risk interwoven risk and policy risk evolution to become the main target of the credit risk management of commercial banks in China. Commercial banks to become their own risks, operating independently, the main target market to maximize profit, government credit protection behind the commercial banks is to the bank’s own commercial credit transition.From the external environment,2007has been the spread of the global U.S. subprime mortgage crisis tells us that only enhanced the banks themselves to resist risks capabilities and operational strength, fostering continued growth of the profitability of commercial banks in the fierce market competitionat the position, but also commercial banks need to respond to market pressure to survive. From the domestic environment, the rapid development of a variety of non-bank financial institutions and commercial banking operations cross and penetration continues to expand the scope of financial innovation tools endless variety of alternative financial instruments makes financial institutions between increasingly competitive."Financial disintermediation "makes domestic commercial banks face unprecedented pressure. The internal and external environment, the level of credit risk management of assets of commercial banks in China a direct impact on the level of profitability of the commercial banks themselves, more related to the smooth running of the entire country’s economic and financial security. At the same time, we also see that the level of credit risk management of commercial banks on behalf of the overall management level of China’s financial industry and the reputation of China’s financial industry in the global financial industry, and more impact on investors’ confidence in China’s financial reform.There is no "one size fits all" model world, China’s commercial banks credit risk management model should be fully summarize the experiences and practices of foreign banks’ credit risk management, credit risk management approach with Chinese characteristics established through innovation. This article is based on learn from foreign advanced risk management experience through the risk management system of China’s joint-stock commercial bank in China Merchants Bank representative to re-examine, find the problems of its credit risk management system, and put forward specific measures on the credit risk management culture, management strategies, management processes, regulatory system, and through innovation to establish credit risk management for China Merchants Bank, establishing the quota management system to control concentration risk as the goal,abandon the the original commercial banks regardless of the risk, regardless of the cost, extensive operation mode to credit risk management of commercial banks in China.