Study On A Commercial Bank Credit Risk Management

Since the reform and opening-up, Chinese bank industry has achieved great leaps with the rapid growth of Chinese economy. In the increasingly fierce competitive market environment, traditional credit risk management modes are becoming more and more unfit for the development of financial market and the demands of innovation. How to scientifically and reasonably manage risk in order to achieve sustainable development has became a strategic issue faced by every commercial bank in China.The main purpose of Basel Capital Accord is to provide unified framework and standards for reference for banks’ internal risk management so as to promote international banking to adopt better risk management methods. Base on Zhengjiang A bank, this paper analysis how to reconstruct its risk management system according to supervision requirements of Basel Capital Accord in order to promote its management. This paper introduces some theories related to risk management, describes the production and background of Basel Capital Accord and analyses its impact on China’ s commercial banks; dissects the current situation and problems of the A bank’s credit risk management; puts forward some strategies to carry out Basel Capital Accord and optimizes the process system of risk management. Meanwhile, this paper also discusses 9 main practical applications in A bank of internal rating based approach as the core of Basel Capital Accord to bank’s credit risk management and puts forwards some frontier suggestions to solve the general difficulties when carrying out new capital accord.