Research On Credit Risk Management Of JTY Construction Company By C Bank Yangzhou Branch

At present,the main source of profit for Chinese commercial banks is still from the spread of deposit and loan business.Therefore,the credit business is still the pillar business of commercial banks,and the credit risk management that goes hand in hand with them is not only an important content of commercial bank management,but also the primary strategic issues faced by the commercial banks.However,compared with the banks in developed countries,China's commercial banks are still in their infancy due to the short period of development.The concept of credit risk management is not perfect and management level is not high.So strengthening credit risk management of commercial banks is imminent.In recent years,the profit rate of the construction industry has hovered around 3.5%,which is a meager profit industry.The construction industry in many cities including Yangzhou is sluggish,with many problems such as overcapacity,inflation,inefficient production,over-investment in government-funded projects,and the trend of real estate which is the downstream of the construction industry is inexplicable and unpredictable.As a result,most construction enterprises,including large-scale construction enterprises,are not able to recover the project advances on schedule and are facing risk of capital chain fracture.If the capital chain breaks down,it will not pay back the loan of banks normally,thus shifting the risk to banks,causing the banks' credit risk.China was late to the commercial banks relatively.At this stage,the research on the credit risk management of banks is still in its infancy,and there are even fewer micro monographs on the risks management of construction enterprises.Under the credit risk management theory and the theoretical framework of the bank' s internal management of Basel New Accord,this article will address the above issues,use a combination of literature research and case analysis methods,and focus on the credit activity of a large-scale domestic bank for a certain type of a construction enterprise.Combining with commercial bank credit risk management system,the article analyses the limitations of banks' credit management,and proposes suggestions for the bank's existing problems in the construction company's credit risk management.The significance of the research lies in that,first,it can promote the steady development of the construction enterprise itself,thus contributing to China's economy.Second,it can improve the management level of the credit risk of China's banking institutions and avoid asset risk effectively.Research method of this article will give priority to normative research.Based on the latest literature at home and abroad,qualitative analysis and quantitative analysis will be used in combination with theoretical research and case analysis.And also the article will fully utilize the knowledge and methods of economics,management,finance,statistics,etc and carry out a study on measuring and preventing credit risk of certain commercial entities in a commercial bank.