Research On Control Of Customers’ Credit Risk In Guotai Junan Margin Business

Guotai junan securities company limited as the first pilot margin trading brokerages, since April2010it launch margin trading business, its steady growth in business scale, and the overall business run smoothly. But with the growing size of the margin trading business, and increasing the number of accounts, it is also facing increasing customer credit risk. On the one hand, securities companies to carry out margin trading and securities funds mainly come from its own funds and securities companies held by the company. Once the customer can’t repay on schedule, the company will have to bear all the losses; On the other hand, with the increasingly fierce market competition, Relevant business departments or staff may be taken to reduce the margin to apply standards and other means to snatch customer resources and expanded performance, resulting in reduced customer quality, increasing the company’s customer credit risk. Therefore, as the basis of Guotai junan existing customer credit risk control measures and inadequate, make practical recommendations to improve. It has important practical significance for strengthening Guotai junan customer credit risk control.This paper is divided into five parts. The first part describes the background and significance, and summarizes the research achievements of margin trading risk control, and introduces the ideas and methods; The second part describes the definition of margin trading business, features, and individual credit risk assessment of the main theories; The third part introduces the basic situation of Guotai junan, the development history and current status of margin trading business, and pointed out that its problems in margin trading business; The fourth part introduces the six measures it margin existing business customer credit risk control, and an analysis of the advantages and disadvantages of these measures; The fifth part for the lack of these measures is proposed to quantify customer credit rating system, and dynamic regulatory system and establish a risk of customer default loss provisions and other measures to control customer credit risk of Guotai junan margin trading business.