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The Study On The Application Of Parallel Operation System In China’s Commercial Banks

Posted on:2015-03-22Degree:MasterType:Thesis
Country:ChinaCandidate:C HuangFull Text:PDF
GTID:2269330422970143Subject:Financial
Abstract/Summary:PDF Full Text Request
The officially presentation of Basel Ⅱ in July2006indicates that the moderncommercial banks stepped into the comprehensive risk management phrase. The credit riskhas became the most important part of commercial banks’ risk management. Along with thedevelopment of finance market and the progress of the technology, the traditional riskmanagement measures and technique could not match the demand of the market, leading to asubstantial increase in administrative costs while not achieving improved efficiency. A lot offoreign commercial banks with long history and rich experience joined China’s financemarket while the China’s finance market keeps opening up, brough strait challenge to theoperation and risk management field of China’s banks.In recent years, domestic commercial banks learn actively through advanced foreigncommercial banks’ experience and practice and continue to carry out the credit riskmanagement reform.. China Construction Bank is the earliest bank in China that introducedthe parallel operation system which Citibank initiated in the1990s, established a mechanismwith risk management in the process of the credit business management. However, since theparallel operation system was born only a short time, the theoretical researches on the it isrelatively rare, the application of parallel system in domestic banks is still a constantlyexploring practice.From the perspective of solving the financial practical problems for China’s commercialbanks, targeting on the reality of high credit risk management costs and the inefficiency in thecredit risk management process, here introduces the parallel operation system. Through thecase study of credit risk management, we found that China’s commercial banks formed a lotnon-performing loans because of the mismatch of the growing financial market and the oldrisk management system and technology. While the system of parallel operation is a verycreative measure to disclose the risks and improve the loan quality. By introducing theapplication of this system in both overseas and domestic, we found that there are somedeficiencies to improve, such as the cultivation of risk management culture,reform of theorganization system and so on, in order to achieve the further promote of the paralleloperation system in the commercial bank industry.
Keywords/Search Tags:risk management, credit risk, parallel operation system
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