Study On Credit Risk Prevention In The Wholesale Industry Of Bank A

In recent years,the wholesale industry has undergone a great development,the urban and rural consumption market has become more active.The wholesale industry's influence upon guiding production,promoting consumption,and expanding employment has become increasingly important.It can be considered as a significant force of promoting social economy development,and an outcome of the country's implement of a series of policies such as expanding domestic demand,and the transforming of the pattern of economic development.Expending credit operations towards the wholesale industry has become an important development direction for many banks,however the natural industry characteristics of the wholesale industry has decided its inherent defects in financing.Hence,the most compelling problem for banks is how to strengthen risk prevention while expanding credit operations towards the wholesale industry.Bank A was chosen as the object of this study.Based on Bank A's current situation of credit risk management for the wholesale industry,several main problems has been analyzed: lack of risk measurements(over dependent on using financial statement);the existing defects in risk assessment;the management after loan is a mere formality.Through the analysis and the study of the above problems,the reasons of the problems have been identified to be external factors,including the economic restructuring,the poor environment for credit,banks' weak risk management such as lag-behind skills of risk recognition and management,the deviation of credit marketing ideas,the lack of study to the industry's policy,and weak awareness of the management after loan.This study learned advanced experience of credit risk prevention of the wholesale industry from banks in developed countries,and combined it with the characteristics of Bank A's credit operations and cases,proposed improvement and supporting measures for credit operations towards the wholesale industry.The measures include using the control of the industry's key risk as the basis of building risk control system,controlling risk through industry subdivision,default risk tracking after loan,building healthy environment for risk management,upgrading credit evaluation system,enhancing the inner control of risk management,and transferring credit risk.Through such measures,the ability of banks' risk control can be improved,the banks' steady development can be achieved,and the wholesale industrys' healthy development can be promoted.