The Strategy Research On Credit Risk Management Of Bank Of Communications Jiiin Branch

Banking serves as the core element of the modern financial system, plays animportant role in the socio-economic development, and is closely linked with allaspects of economic life. Bank credit risk management directly affects the quality ofbank credit assets, which determines the bank’s safe, stable and high-speed operation.This has an important impact on China’s financial markets, and even the healthy andsustainable development of the entire economic system.Jilin Branch of Bank of Communication was established in September1987,which is the first joint-stock bank in Jilin Province since the reform and opening up.In2004, Jilin Branch of Bank of Communication made the reorganization of funds,the bank’s internal management model, business developments were rationallyadjusted and the bank expanded rapidly. Currently, The total assets in Jilin Branch ofBank of Communication reach56.976billion yuan, loans exceed35.572billion yuan,credit capacity has increased significantly. In2007, the loans of Jilin Branchamounted to17.801billion yuan, credit card transactions amounted to322millionyuan; By2012, its total loans and credit card transaction volume will go up to35.572billion yuan and9.817billion yuan separately,1.99times and29.48times than theamount in2007, Changchun Branch of Bank credit business (especially electroniccredit business) is developing rapidly.However, the Jilin Branch of Bank of Communication is still facing thefollowing problems: credit risk management mechanism is not perfect, theorganizational structure is not reasonable, the risk of insufficient manpower inresearch team, innovation ability is not strong, lack of means of securitization, the lowlevel of credit risk management, Credit risk philosophy is backward, poor assetquality and concentration of credit risk and other issues.Based on in-depth research on sorting out the relevant concepts and itstheoretical foundation, this paper studies the development status in Jilin Branch of Bank of Communications, finds out its credit risk management problems, andproposes appropriate policy recommendations, which will effectively control andmanage credit risks and promotes the stable development of Jilin Branch of Bank ofCommunications, safeguard the safety of financial system and stable operation,promotes China’s economy to achieve high-speed, stable and sustainabledevelopment.