Research On Management Of Letter Of Guarantee Credit Risk Of Bank C

By the way of banks' credit engaged in, letter of guarantee solves the problems of trust around commercial activities and makes it more convenient for the blossom of economic activities. The income from business of guarantee has become a significant part of bank's business growth and a major direction to transform profit model from traditional interest balance to intermediate business income for commercial banks. The development of business always accompanied with risks. Domestic and foreign commercial credit condition has become more and more severe, especially in the current situation of long-term bottomed international economic situation. Since the credit risk issue caused by the applicant, beneficiary or third party has always been accompanied by the development of guarantees business, how to develop guarantee business in risks has always been a subject worth studying in the banking system.This paper will focus on credit risk control of guarantee business in bank C, reveal the nature of the credit risk of guarantee business based on the theoretical study of guarantee business and then seek the methods and measures to strengthen and improve.The first chapter will introduce the background and significance of the research and briefly introduces the basic situation bank C. According to the current domestic and international theoretical study on the definitions and features of guarantee business, the second chapter will introduce the basic theory of the credit risk and the definitions, characteristics, classification, forms of the credit risk in guarantee business, setting the basement of the following parts. The third chapter, based on the current situation of bank C in area of management of letter of guarantee credit risk, tries to find some problems and causes in the current situation. The fourth chapter tries to perform improvement measures and suggestions by the way of explaining internationally accepted processes and methods aiming at the problems of bank C. The fifth chapter will illustrate the specific measure and the overlook.