A Case Study On Risk Management Of The Huaxing Sub-branch Of China Construction Bank

The five commercial banks,including Industrial and Commercial Bank of China,Agricultural Bank of China,Bank of China,China Construction Bank,and Communications Bank of China,are an important part of the banking industry in China.At present,the Chinese economy is in a doldrums and the overall credit risk continues to climb.The situation of large commercial banks in China against credit risks is very severe.Hence,this paper took the risk management of Huaxing Sub-branch of China Construction Bank as the research object.This will do a lot to improve the risk management level of Huaxing Sub-branch and provide necessary references for the development of Chinese commercial banks.This paper guided by the theory of asymmetric information and credit rationing theory,according to the policy requirements of internal controls,capital regulation,loan impairment provision and internal audit provision,believes that Huaxing Sub?branch has some advantages such as many outlets,local authorities and stable customers.The credit business has developed rapidly and the total amount has grown steadily.However,there are still many problems in the process of credit risk control such as low quality of the lending officers,recognizing and assessing credit risk subjectively,attaching great importance to the loan despise management and excessive concentration of credit.Therefore,In terms of improving internal control,it is suggested to cultivate awareness of credit risk among lending officers,implement job responsibilities,optimize credit risk recognition and assessment and strengthen the management of loan basis.Besides,in terms of controlling credit risk,Huaxing Sub-branch should improve the scale and structure of capital,realize the smooth transition of loan impairment model,introduce risk-oriented internal audit and introduce new credit risk mitigation measures.