Research And Case Study On Commercial Bank Credit Risk Management System

With the development of modern economy, the risks of commercial banks arebecoming more and more complex. Credit risk is the major risk of commercial banksand the main reason for regional and global financial crisis. Strengthen the credit riskmanagement is the key to the long and steady development of commercial banks andthe economy of the whole world. Raising the level of credit risk management,preventing and solving credit risk are important means of enhancing the corecompetitiveness of commercial banks. Since the entrance of WTO, our country’scommercial banks have obtained fast development. Comparing with the requirementsof the New Basel Capital Accords and the credit risk management experiences indeveloped countries, the credit risk management of Chinese banks is still at thebeginning level. So making the research of improving the credit risk managementsystem and raising the credit risk management level has important theoretical andpractical meanings for preventing and solving credit risk, enhancing the corecompetitiveness of commercial banks and accelerating the healthy economydevelopment.Choosing Commerce Bank as the research object, using the method ofcomparison and qualitative and quantitative analysis, this paper analyzes the meaningand characteristics of credit risk of commercial banks and studies the situations andproblems of the credit risk management system of Commerce Bank. Based on thetheories of credit risk management and the requirements of the New Basel CapitalAccords and according to the advanced experiences of credit risk management offoreign banks, this paper gives advises for improving the credit risk managementsystem of Commerce Bank.The conclusions of this paper include: The object of credit risk management iscapital at risk and the goal of credit risk management is to maximize the capital returnadjusted by risk．The framework of credit risk management system consists of creditpolicy, organization structure，credit process and system tools. Commerce Bankshould take the advanced experiences of foreign banks for references and improve thecredit risk management system. First, making full use of the guiding role of thestructure. Second, improving the efficiency of the credit process. Third, enhancing thefunctions of system tools. Forth, optimizing the credit management system. Fifth,strengthening the training of the staffs. Sixth, developing healthy culture of credit riskmanagement.