W City Commercial Bank Credit Risk Measurement And Management

Credit risk is the most common risk of commercial banks,and it is one of the main reasons leading to bank bankruptcy.As a rising star in the financial field,the city commercial bank has increased its credit risk pressure since the Chinese economy entered the new normal in the second half of 2014.By the end of 2016,34 of the 104 city commercial banks in China accounted for 1.74%of the non-performing loan ratio of commercial banks.This paper takes W City Commercial Bank as a case study,uses RAROC model to measure the level of credit risk management of W city commercial banks,and puts forward corresponding measures to improve the level of credit risk prevention and control of W city commercial banks.This paper takes W City Commercial Bank as the research object.The bank is located in a coastal city in Shandong province.The level of risk prevention and control,the scale of assets and the profitability of the bank are in the forefront of the provincial inner city commercial banks.However,under the background of the current macroeconomic downturn,the bank still faces great operational pressure,especially the pressure of credit risk prevention and control.To this end,the paper introduces the relevant concepts of credit risk and the identification and measurement of credit risk,and introduces the current situation of W city commercial bank credit risk management.The RAROC model is used to analyze and compare the 2012-2016 year W City Commercial Bank and other 5 city commercial banks in 2016.Longitudinal results contrast,W City Commercial Bank's credit risk prevention and control level has declined.The horizontal results show that the W city business bank has a certain advantage over other banks,and its credit risk prevention and control measures also have a strong reference to other banks.The article further analyzes the reasons leading to the decline of the credit level of W city commercial banks,mainly from the two parts of external and internal reasons.At the same time,it puts forward reasonable and effective measures to improve the credit risk management of W City Commercial Bank.The macro policy and environment includes optimizing the macro credit management system,strengthening the cornstruction supervision system and reducing the government intervention.The bank includes the establishment of the comprehensive risk management strategic target,the strict implementation of the "three check" system and the optimization of the loan.Credit rating system,the use of scientific and effective risk measurement model,the effective monitoring and identification of risk signals,innovation and disposal measures,optimization of credit risk management organization structure,the formation of professional customer manager team.