Analysis Of Credit Risk Management And Strategies In Urban Commercial Banks

Bank’s credit risk meansafter the bank provide loans to the borrowers, due to areduced ability to repay the loans, or a malicious breach of contract and other reasons, ledto unable to repay bank loans, this uncertainty will give banks the expected losses. Fromthe history of the development of city commercial banks and the current situation, becauseof its small size, information technology is relatively backward and other characteristics,there are still significant deficienciesin terms of credit risk management, but the end of2013will be based on the city commercial banks represented small and mediumcommercial banks to implement agreements deadline. Therefore, China’s urbancommercial bank credit risk research becomes very necessary and urgent.This article looks at the bank’s credit risk management, compare to the requirementsof the New Basel Capital Accord, we researched on the China’s city commercial banks. Ifirst start from the origin of the credit risk, read a lot of relevant literature, the researchneeded for the text data in the literature review, this study formed the theoreticalfoundation; Second, we analyzes the current situation of urban commercial banks, theproblems and remedy of the credit risk management. Third, we used a comparativeanalysis the domestic and foreign banking credit risk management models, and based oncharacteristics of city commercial banks, to find the most suitable credit risk managementmodels, namely Logistic regression model. Finally, according to the problems of theChina’s urban commercial banks, wo give the solutionof the problems of the credit risks,these measures included: construction of new management system of credit risk, establisha scientific and rational risk rating system, construct accurate credit database, pay attentionto cultivate professional talents, and so on.