Credit Risk Management Measure Of Group Customers By China Development Bank Gansu Branch

In the early of20century, the collectivization has been the mainstream development model for the enterprises. The business groups in China had a significant development at that time. For banks, the enterprise group with the large amount of assets as a signal shows its strong market competitiveness and risk-resisting ability. Group customers become the target customer pursued by the banks. However, from the aspect of the risk, there are amounts of credit risks including the high loan concentration and the strong concealment. The group customers with the fake assets, the high financial leverage ratio, the excessive warranty and the blind expansion, have a strong concealment in the period of economic prosperity. In the economic downturn, these problems would be exposed with the declining of its revenue. The domino effect is noticeable which would cause a huge lose of bank assets. Therefore, the loan risk management for the group customers is a vital part of the bank loan risk management.This paper has analyzed the characteristics and the cause of loan risks and current status of the loan risk management in China Development Bank Gansu Branch. The problems are discussed from the aspect of customer selection, risk identification and measurement, and risk control. The constructive suggestions have been put forward at the end.