Optimizing The Credit Risk Management System In Commercial Banks

The bank is a kind of industry that operating and controlling risk is its core competitive ability. The method of judging the availability of risk management depends on its ability to improve the core competitive power and the value of the company. Among all the risk, credit risk is the main risk that banks confront within the daily operation. Within the background of the current situation, strengthing the management of credit risk is very important.On the background of American fiscal cliff, European debt crisis, global excess liquidity and the trade protectionism, the global economy experienced the decreasing level, the economic growth of China fall after rise compared with the last year, which is because of the lower growth of investment,consumption and external trade. The main point of value creation lies in improving the ability of risk management,price fixing and cost controlling.The thesis bases on the materialist dialectics, combines the normative research with the empirical study, on the background of credit risk management of Agriculture Bank of China, emphasizes more on the bank credit risk management mechenism. First of all, based on the recent credit risk management situation of Agriculture Bank of China Shandong Branch, the thesis reveals many problems existed in the management mechanism. Secondly, it studies the credit risk managment frame released by the Hongkong Monetary Authority, analyzes the advanced icredit risk management process of the international banks like American Bank,Citibank and the Standard Chartered Bank. By research on Industrial and Commercial Bank of China and Construction Bank of China, the thesis analyzes the advanced points. Finally, according to rating management,collateral valuation and areal economic ability analysis, the thesis put up with the most suitable scheme on credit managment mechanism for Agriculture Bank of China. Although credit risk management is not the new theoretical area, it also got certain study findings. My thesis has the following characteristics compared with other thesis:1. The research perspective based on the credit risk management is more unique.2. For the research method, the thesis combines the normative study with the empirical study, theory with practice. The writer is the staff of the bank, work in the area of risk managment for many years, has a lot of practive experience in banks credit risk management and has certain study on releted theory. The thesis makes several innovations in the following points:(1).redesign the credit risk management organization for the Agriculture Bank of China, integrate the fuction of risk management department, credit management department, credit examination and approval department,asset disposal department, in order to strengh credit risk managment and dispose.(2).in the light of rating management, collateral valuation and the maroeconomic study ability and the post loan management, the thesis put up with the concrete optimiazation scheme.(3).reorganize the risk management evaluation system, that is centralized decision,decentralized execution, dynamic optimization and quantitative application. Thus, it helps improve the credit risk management ability.