A Study On The Management Of Credit Risk Of CH Rural Commercial Bank

With the deepening of the process of economic globalization, the internal economy is stepping into the new normal of the third phase of superposition. The development of economy is slowing down, with the pressure of going downward; the financial industry is facing an even more uncertain management environment. The commercial banks have a very urging problem of improving the ability of prevention and control of financial risks if they want to survive and develop in the intense competition. The "New Basel Capital Accord" classified the risk of commercial bank into credit risk, operating risk and market risk. The commercial bank in China didn’t have a long history, with relatively backward capital market, and mild ability to prevent and control the risk. And because the primary business of our Chinese commercial bank still is the traditional deposition and loan business. If there’s credit crisis, it would be very difficult to recovery the loan funds, which will greatly damage the survival and development of our commercial banks. So, the credit risk is mainly the matter that our banks should take close checking, with no exception of our rural commercial banks rooted in the vast rural areas. The rural commercial Banks are the results of the comprehensive deepening of the reform of rural financial system, restructured from the rural credit cooperatives. After many years of development and reforming, they have greatly changed in their fast-running business, with the geometric multiples of asset size and bank’s loans. Facing the rapid expansion of credit amount and complicated economical situation, the weak financial strength when facing "three rural" itself, insufficient creativity of financial instruments, soft in the risk control ability, caused a stably high credit risk in the potentially explosive situation. If we don’t have an effective control on these risks, the development of rural commercial bank will be in serious constraints, even damage the survival of itself. As long as we lose the support of the RCB, the deepen rural reform, the development of modern agriculture, the promotion of the adjustment of agricultural structure, the increase of the income of farmers, will all in painful and ineffective steps. All in all, to strengthen the credit risk management wholly, contracture the credit risk prevention and control system is becoming a pressing matter of the moment for the RCB.This essay starts with the related theory of credit risk and credit risk management, continues with theoretical analysis and definition of related concepts, and introduces the basic process and measures of credit risk management. And take ChaoHu Rural Commercial Bank as a specific research object, having a depth analysis for the business condition and credit risk management of it. With the problem analysis of the credit risk management, from the internal cause and the external cause, comprehending the advanced experience of both home and abroad commercial bank management, I have some inspirations for the rural commercial bank to borrow. And, in the end promote the countermeasure and suggestion of the credit risk management. This essay combined the theory and practice, taking ChaoHu Rural Commercial Bank as a studying sample based on the theoretical elaboration. I looked into the credit risk management through field investigation and provided some specific policy recommendation. As a target, I am looking forward to promote the ability of credit risk prevention and control and management of ChaoHu Rural Commercial Bank, so that it can execute a sustainable and healthy management. I hope we could summarize some common experiences to provide some realistic references for the study of the credit risk management of the rural commercial bank in our country.