Procedure Of Risk Management Of Commercial Banks Grassroots Corporate Credit Lines

Since the reform and opening up, China’s banking has been developing rapidly,withstanding the test of the global financial crisis, playing a key role in China’seconomic construction.In the current and coming period, the domestic andinternational environment facing China’s banking industry is still severe andcomplicated, to further maintain its healthy development and the quality ofcontrollable credit assets of the banking, in the whole process we should strengthenthe primary line of corporate credit risk management research, explore its own rules,and constantly improve the level of grassroots line of corporate credit riskmanagement and corporate credit asset quality and offer maximum protection againstthe risk of the company’s credit business in the juncture, which is of practicalsignificance.Domestic research about commercial banks credit risk management of theCompany mainly focused on the theoretical aspects of macro, neglecting law study ofpartial specific operational level process management on grass-roots practice, whichis very necessary if we want to prevent the risk as much as possible. Credit business isthe main business of commercial banks, and overall size of the companies’ creditbusiness is larger. Facing a variety of economic entities and all walks of life, riskmanagement is complex and diverse, so more difficult. Corporate credit risk usuallymeans the possibility of leaving the bank suffering from a loss when money of thebank is loaned to corporate customers, and the borrower is unable to repay due tovarious reasons. Corporate credit risk management means that the bank, through theestablishment of a certain form of organization, the implementation of a series of rulesand measures, makes the corporate credit business risks become controllable tomaximize the corporate credit asset quality and earnings.The primary line companycredit business sector is one of bank corporate credit business sectors and is one of thefirst pass of the corporate credit business, risk management. Its credit risk management process, which means the process of the risk management process, is aneffective management model on the practice level of company’s credit riskmanagement. It aims to provide a guarantee for the healthy and sustainabledevelopment of corporate credit business. It is a whole management system withcorporate credit risk, while it has its own characteristics and laws. This paper regardsexploring the laws of primary line of corporate credit risk management during thewhole process as a foothold, making the entire risk management process of theprimary line company credit the main line and making corporate credit business theresearch object, basing on rational, prudent, realistic principle, using the methods ofcombing actual case analysis with theories. First, this paper studies researchbackgrounds, relevant systems and regulations, theory and literature both at home andabroad to strengthen the credit business risk management, actively absorbing thelong-term accumulation of valuable experience from domestic and internationalcommercial banks and academia in the credit business risk management, focusing onthe theory of internal control, risk management theory and the theory of processreengineering to deepen theoretical training; Secondly, it studies the concept ofcorporate credit risk management process, the types and causes of the company’scredit risk and the response strategy. It also broaden the horizon to risk identification,risk prevention, risk monitoring, risk response methods and technology.Then thispaper studies the credit risk management system of sub-branch company D, Bank Aand does case studies toward D Branch of corporate credit risk management processes.Finally, this paper finds out the law of grassroots line of corporate credit riskmanagement during the whole process and makes optimization recommendations.Through research, I think that the current primary line of corporate credit riskmanagement processes comply with the regulatory policies and regulations, in linewith the specific actual work, drawing on the advanced international experience andhas validity. Here are its laws: Corporate credit business risk management processshould be refined, the center of gravity lies in the pre-lending investigation and riskidentification and assessment phase, with emphasis on guarding against credit defaultrisk, operational risk and legal risk, key point lies in the credit analysis, difficulties lie in the post-loan supervision. Optimization suggestions at this stage: full-time riskcontrol positions at the grassroots level line of credit business department, theinvestigation of the staff positions before the loan, loan audit, post-loan managementaspects involved in the risk control; before reporting materials submitted for approvalto the credit line, at the grassroots level, internal assessment should be established;full-time post-loan management staff; application of advanced technology toolsshould be set up; we should also enhance training, improve staff awareness of risk,professional standards and the overall quality.