A Study On The Credit Risk Management Of Xinjiang Iron And Steel Industry For Domestic Commercial Banks

Commercial bank credit risks are the sum of varies risks from the credit businesses.Currently, effective management of credit risk is enormous challenges faced by commercialbanks. During the China’s12th five-year plan, China’s steel industry showed the trend of rapiddevelopment, the product volume and ability increased．However, with China’s steel industryserious excess capacity, the price of steel is very unstable, reducing the overall level ofprofitability for steel companies. At the same time, China has also introduced thecorresponding steel industry regulatory policies, in order to control the serious environmentalproblems,on heavily polluting steel companies will continue ongoing governance of the newprojects will be more stringent audit,that greatly affect the ability of steel companies creditfacilities.Although the credit risk management of China’s commercial banks about the steelindustry has accumulated a wealth of practical experience，there are still many problems in thecredit risk management system. Only in-depth study of its problems, and adopt effectivemethods, in order to further ensure the healthy and orderly development of commercialbanks.Based on the above analysis, the paper argues that analysis of the management of thesteel industry in Xinjiang commercial bank credit risk has a more important theoretical andpractical significance for the healthy development of commercial bank branches in Xinjiangregion.With the rapid growth of China’s western region’s infrastructure construction andinvestment in fixed assets，Xinjiang’s steel industry is also continuing to grow, local economicdevelopment in Xinjiang has made tremendous contributions. In this paper, starting from thesteel industry in Xinjiang, analysis focused on the steel industry in Xinjiang over credit riskmanagement of the commercial banks, and reveals credit risk management problems incommercial bank, such as Xinjiang inadequate enforcement of the steel industry in the creditrisk management process; commercial banks to the steel industry in Xinjiang and limitedability to understand the potential risks.In order to better support the healthy and orderlydevelopment of iron and steel enterprises in Xinjiang, the paper puts forward thecorresponding countermeasures and suggestions. Such as Xinjiang’s steel industry customersincluding improved credit risk management processes; enhance the commercial banks credit risk of the steel industry in Xinjiang ability to predict; sound disposal plan Xinjiang steelindustry credit risks; training related to the steel industry professionals, such as credit riskmanagement.On this basis, and continuously improve the Xinjiang regional branches ofcommercial banks credit risk management for commercial banks to further manage the creditrisk of the steel industry in Xinjiang provides empirical basis.