| In recent years,the rapid development of China’s banking industry has revealed some risks at the same time that it has achieved good results.Against the background of a more complex macroeconomic internal and external environment,the development of China’s banking industry as a whole has exhibited low returns and high risk costs.The large state-owned commercial banks(including Agricultural Bank of China,Industrial and Commercial Bank of China,Bank of China,China Construction Bank,Bank of Communications,and China Postal Savings Bank)that continue to dominate the Chinese banking system continue to strengthen their capital strength and their risk management capabilities continue to improve,but At the same time,a series of risk issues such as soaring debt levels,deteriorating credit quality,and narrowing interest spreads have also exacerbated the occurrence of credit risk,which will seriously affect its profitability and ability.In the current financial environment,in order to better improve the profitability of China’s state-owned commercial banks and enhance their credit risk management capabilities,it is important to study the profitability and credit risk management of China’s state-owned commercial banks.And realistic meaning.This article analyzes the current state of profit and credit risk management of Chinese state-owned commercial banks and finds that there are many problems and challenges in the state-owned commercial banks in terms of profit and credit risk management,such as the low efficiency of non-performing loan management caused by credit risk.At the same time,facing the business shock and other challenges brought by the rise of the fintech industry,the empirical study analyzes the relationship between the profitability and credit risk of China’s state-owned commercial banks,and proves that there is a significant negative correlation between credit risk and profitability.The problems and challenges in credit risk management of state-owned commercial banks put forward a sound credit risk management system to better prevent and control the occurrence of credit risk,manage non-performing assets from multiple perspectives and diversify their disposal methods,and use financial technology as a tradition.Suggestions such as financial development and energy storage enable China’s state-owned commercial banks to effectively improve their credit risk management capabilities,enhance their own profitability,and better adapt to the sustainable development of the times.Credit risk is an inherent risk in the business operations of commercial banks.The introduction of the New Basel Accord has pushed credit risk management to the strategic height of commercial bank operations.China’s state-owned commercial banks have been constantly fighting against credit risk.With the support of the national government,the non-performing loans that have been digested have accumulated trillions of yuan.At present,in the face of multiple challenges such as the deepening of joint-stock reform,rapid development of financial technology,and marketization of interest rates,China’s state-owned commercial banks must continue to maintain a stable and sustainable development trend.It is necessary to do a good job of credit risk management,prevent and control the occurrence of credit risk,and pay attention to the management of bad assets.In view of the fact that credit risk itself is cumulative,non-systematic and potential,long-term,disruptive and difficult to control,the credit risk management of China’s state-owned commercial banks must be more systematic and comprehensive,and at the same time learn to use financial technology Integrating with the environment of the times,for example,in the current era of fintech,China’s state-owned commercial banks must learn to use digital data technology to complete a digital transformation operation management model,improve their credit risk management capabilities,and thereby improve their profitability. |
