Research On Credit Risk Management Of Industrial And Commercial Bank Of China

In the background of rapid development of financial liberalization and the ever-changing financial innovation, the financial risk of China is mainly concentrated in the commercial banking, which is determined by our current financial system and the smaller size of the market. On the other hand due to the market risk of China’s exchange rate and interest rate are not fully market-oriented, and also the limited financial products and smaller size of stock market, so the credit risk is not very prominent. Therefore, the credit risk of commercial banks is China’s major factor of financial risk. The existence of credit risk means we need manage them. The management of credit risk is main cause of the existence and development of the commercial banks. Meanwhile, under the current market environment, there is a big gap between China’s commercial banks and the foreign banks with advanced management mode.Thus, the proficiency of credit risk management determines the bank’s own survival and development in China. So under the current economic climate, how to improve the management of commercial bank’s credit risk management capabilities and its research is particularly critical.As continued innovation and development of China’s credit risk in the modern economic activities, the field and size of the credit risk involved is also gradually expanding. Therefore, how to manage and control credit risk effectively has become the very challenging task under the current economic conditions. Whether from microscopic or macro perspective, past,present or future, to stable development of the economy in current conditions, it is necessary to study the credit risk management.This article first through the introduction introduces the significance of research, background, contents and methods, to understand the article summary;Second, simply introduces the overview of credit risk in commercial bank and the present situation of our country commercial bank credit risk management, clear what is it, and at present our country commercial bank credit risk in credit risk management on achievements and deficiency.In the end, This paper mainly for ICBC’s credit risk management situation and existing problems, analyze their credit risk through the KMV model, get the advantages and disadvantages in the management of credit risk. Meanwhile compare to the domestic bank and the advanced skill and experience of foreign commercial banks, get some suggestions and advice for ICBC. So improve the level of credit risk management, prevent and mitigate credit risk, it is not only to enhance the core competitiveness, but also to make it develop healthy. On the other hand, get some contribution to optimize credit risk management for our commercial bank.