Research On Credit Risk Management Of Group Customers Of Commercial Banks

Sorts of group client-based relevant companies have achieved rapid development,and the groups of large scale and sound development have been the focus of differentkinds of commercial banks to expand their business in recent years. Group clientsbring great benefits to commercial banks; however, the existed risks likesystematicness, complexity and invisibility bring huge potential threat to bank creditassets. Thus, commercial banks should make earnest efforts and research tostrengthen the monitoring and management of group client credit assets, and explorenew ideas and practices that are different to the single client risk management.In this paper, the study object is the risk management of group clients of theLCH bank. The author studied the risk management of group clients and put somesuggestions combining his risk management experience in the bank. First, thedefinition of group client and commercial bank risk management was made, andeconomic capital and RAROC were explained; second, according to forms of groupclient asset risk, the author pointed out that the essence for commercial banks tograsp the group client risks was to deal with three risks:structural risk, infectious riskand concentration risk. At the same time, the author showed the problems in handlingthe three risks combining the group client credit management situations of LCH bank,and analyzed the reasons to the problems. Last, the author came up with advice fromfour aspects: strengthen the group clients information sharing, complete the quotalimitation calculation, strengthen the group clients basic management and improve therisk measurement of group client risks.