The Study Of ZZ Bank N Branch Credit Risk Management

Credit risk, as an important part of commercial bank risks, is one of the key factors of improving the profitability of commercial banks and ensuring their prudent operation. N Branch (first-tier branch) of ZZ Bank is the case studied in this paper. In the paper, its risk control management system and specific operation status are regarded as the study objects to analyze its deficiency and problems. Thus, experience and lessons are summarized and reasonable suggestions are put forward, hoping to provide reference for N Branch in improving its risk control capabilityAnalyzing from the status quo of N Branch, credit risk management system has taken its initial shape and is being developed and improved. The risks are managed in a framework. Meanwhile, the corresponding capability of managing risks has been greatly promoted. However, in the process of analysis, some problems related to risk managements are detected.And the problems can be divided into the following types. For instance, the credit risk management culture is not totally accepted; the existing risk management system is not impeccable; the organizational structure and process design are not reasonable enough; and related practitioners are lack of high professional and moral quality. And all these problems restrict the development and risk control of the bank. Therefore, in this paper, these problems are explored with quantitative and qualitative analysis as well as case study and the conclusion of solving these problems are drawn. If N Branch wants to improve its level of risk control management, on one hand, it has to cultivate corresponding credit risk management culture in the bank, consummate credit risk management system, renovate existing organizational structure and refine credit risk workflow. On the other hand, it has to precaution credit risks of the group clients, prevent risks in financing guarantee companies and improve the comprehensive quality of credit risk practitioners.