Research On The Pool Structure Of Chinese Commercial Bank Retail Exposures

Since2104,Chinese economy has entered into the state of”superposition of threeperiods”－－the shift period of growth rate, the labor pains period of structuraladjustment and the digestion period of pre-policy stimulation. Since the credit risk ofreal economy is on the rise, Commercial banks are also at stake. According to theinterim reports of16A-share listing commercial banks, Others’ balance and rate of theNPLs tends to increase except that Ningbo bank’s rate of the NPLs is basically flat.The amount of the NPLs has reached up to553.8billion, which is almost equivalent tothe total net profit of684.9billion, meanwhile regulators also increase penalties for theassessment of NPLs. On September22,2014, the18th International Conference ofBanking Supervisors (ICBS) was first held in China,” Any economy would go throughthe state of economic slowdown, economic entities’ demand for loans and banks’ assetquality would both decrease with real economy’s deceleration of growth during thisstage, while the key to handle the troubled assets is to take steps urgently”, saidAdam·Farkas,the executive director of European banking authority. Chinese bankingindustry can also use for reference. Chinese commercial banks ought to turn to otherless-risky business to develop in the current circumstances, and banks are fighting totake retail business as the new highland on account of their small amount of each dealand risk diversification. Banking industry’s management mode of supremacy of profithas to transform into strategic considerations of supremacy of risk measurement. Theimprovement of the pool structure of retail exposures is brought into agenda to adapt toappealing of the retail business ministry reform.The improvement of the pool structure of retail exposures contributes to bankingindustry to strengthen internal control system, guard against credit risk, intensify capitalcontrol and enhance banking system’s robustness, While the history of the poolstructure of Chinese banking ‘s retail exposures is quite short, so the paper probes intothe present situation of pool structure of Chinese commercial bank retail exposures andchallenges we faced with in the improvement course of the structure deeply on the basisof dwelling upon the theoretical basis of the structure and summarizing and taking theexample of international banking’s practice to establish the structure. Finally, the paperput forward corresponding countermeasures from the four perspectives－－data,verification, application and strategies of retail business to further improve the pool structure of Chinese commercial bank retail exposures.The paper is aimed at providing a research approach and a development directionfor Chinese commercial banks to improve the pool structure of retail exposures in orderunder the guidance of the Basel and the”Commercial Bank Capital ManagementMethod”...