Research On The Credit Risk Management Of China Merchants Bank Based On Administrative Measures For The Capital Of Commercial Banks (for Trial Implementation)

Abstract:At present, it is a critical time for China’s economic transformation and upgrading. The banking industry is facing all kinds of challenges. For example:the business environment of banking industry is changing dramatically, the financial disintermediation problem is becoming more and more serious, what’s more, the business of each bank has a high similarity, the footsteps of interest rate marketization is getting closer and closer, and so on. In the face of this situation, when banks are trying their best to develop their own businesses, risk prevention becomes particularly important. Among them, the credit risk prevention is Paramount.On the basis of summarizing the relevant research results at home and abroad. This article combines theory with practice analysis, including the latest theory of Administrative Measures for the Capital of Commercial Banks (for Trial Implementation) and the implementation of credit risk management in China Merchants Bank (CMB). After analyzing the status of the credit risk management in CMB, we find that CMB’s credit asset quality is good and this bank actively prevents and controls credit risk. But there are still some problems in CMB. For example, the structure of credit assets is not reasonable, non-performing loans and non-performing loan ratios "double up" and so on. Under this circumstance, in order to find a good way to improve the credit risk management level of CMB, I do some researches:I compare and evaluate the credit risk management of CMB and other domestic commercial banks. Because these Banks have some relatively advanced credit risk management methods, which come from the word-leading commercial banks. By contrast, foster strengths and circumvent weaknesses.Through the above analysis and research, in order to make CMB better carry out the requirements of Administrative Measures for the Capital of Commercial Banks (for Trial Implementation), this article puts forward5suggestions. First, give enormous publicity to the five risk concepts. Second, actively improve the internal management system. Third, continuously promote credit approval reform of CMB. Fourth, strengthen post-loan monitoring. Fifth, further improve other related requirements of the Capital Administrative Measures. Hoping these suggestions will be able to fully and effectively improve the level of CMB’credit risk management.