Research On Credit Risk Management Of China Construction Bank Branch Of Jilin Province

As the appearance of the rudiment of bank, no matter temples dealing gold andsilver by ancient Babylon, money changer by Italy in the Middle Ages or Jinmerchants Banks and Ningshao Bank in China, Credit Risk Management is the keyconcern for managers. It can ensure the cash liquidity of daily management andachieve long-term survival and profit only by supervising violating a treaty andavoiding too much overdue positions and non-performing loans.With thedevelopment and transformation of modern finance, the essence of bank does notchange, and the management of credit risk is the base of bank service as well.Therefore, commercial bank must learn to realize and define credit risks and also payfor effective management to improve their own competitiveness.Since the year of2014, the situation of Macro-economic is stillcomplex.Moderation in economic growth, economic restructuring and businessoperation face big problems as the decrease of production price, the raise of cost andthe rupture of some of the enterprise’s chain.The risks of guarantee circle andguarantee chain widespread which caused enterprise debt default and influence thebank capital security a lot. In such serious background, the quality of commercialbank capital bear huge pressure,strengthening the credit risk management areimperative.This text introduces the basic situation of CCB Jilin province branch briefly.CCB of Jinlin province was founded on September21,2004,which was thepredecessor founded in1954in China Construction Bank Jilin branch. After50years’efforts, CCB of Jinlin province have develop298branches totally, including8twograde branch and19straight branch, In which city branch of the34County sub branches,31outlets,224, occupying a decisive role in the financial institutions inJilin province. And then have an introduction of credit risk management. Jilin Branchof the loan balance of134.823billion yuan, balance accounted for30.55%, rankingfirst of the four major state-owned banks. In the total loans of Jilin province, the loanbalance of Changchun area69.713billion yuan, accounted for51%of the total loans.Compared with the other banks, the non-performing loan rate is low. But from thenon-performing loans growth, Jilin branch of non-performing loans are rising. Badloan grow fast no matter compared with the same or other regional branch. Viewingfrom the specific situation of Jilin branch, we can find two apparent aspects of thepressure of credit risk management: one is the total rising of bad loans, overdue loansand Credit class sheet, and the other is the frequent happening of consumers majorcredit risk issues, which exposes the urgent need to improve the credit riskmanagement of Jilin branch. After that I point out four questions existing in creditrisk management: the deficiency of setting concept of credit risk management、theneeds to improve the comprehensive quality of staff、the non-perfect credit businessprocess、the needs to improve monitoring and warning technology. Finally, I analyzethe cause of the problem and point out the corresponding improvement strategies. Byencouraging the staff positively, establish consumers-oriented of the managementconcept and strengthen the management among consumers、product and process inorder to strengthen the construction of credit risk management. Pay attention to thecareer quality、 communicative skills、 self-study and the improvement ofmanagement ability of credit risk manager. Strengthen investigation before loans、examination and approval in loans and management after loans. Strengthen the creditbusiness process and perfect the monitoring warning of consumers risks and productrisks and the monitoring of risk releasing tools.