Research On Improved Credit Risk Management After Loan In 'Shanrong Loan Business' For Hengyang Branch Of China Construction Bank

Since 2015,China's economy has entered a New Normal State.Due to the pressure of economic downturn,and also the influences of the policy termed as ‘three go,one drop,one supplement'(i.e.,capacity reduction,de-stocking,deleveraging,cost reduction,improving underdeveloped areas)in supply-side reform,further developments in small and micro businesses are adversely affected,meaning that their margins of survival and profit are further squeezed.Therefore,the repayment capability of these small or micro-businesses,from the viewpoint of banking,is reduced.Based upon evaluation/analysis of credit risk management after loan(CRMAL)in 'Shanrong Loan Business',a special project for small and micro businesses set up by Hengyang branch of China Construction Bank(CCB),and also employing fundamental theory of CRMAL,this thesis aims to: enhance the awareness of CRMAL and thus change the present situations ‘more cares on loan,much fewer on management(after loan)' through a theoretical study;design improved schemes regarding CRMAL and suggest better solutions to 'Shanrong Loan Business' for Hengyang branch of CCB,and also provide possible references in the respect of CRMAL,for other commercial banks with similar loan projects set up for small or micro-businesses.Firstly,basic theory of CRMAL is introduced,and the state the art of CRMAL is reviewed.Secondly,the assets conditions of ‘Shanrong Loan Business' in CCB(Hengyang branch)are fully analysed,and its underlying problems and also possible causes regarding CRMAL,are presented in detail,referring to the following few aspects,say,ideology,building of qualified personnel,management mechanisms,incentive mechanisms,and risk pre-warning.Furthermore,an improved scheme is designed to solve these problems in CRMAL i.e.,basic principles of scheme designing and overall framework are constructed,the scheme's main contents are standardized,and finally new methods of management are proposed.More explicit ly,to guarantee this improved scheme's good operations,this thesis presents specific/detailed solutions to the following six problems,which include:(1)building more qualified personnel teams to reduce lack of well-trained employees in CRMAL,(2)raising awareness of the vital importance of CRMAL,(3)using standard regulations to guarantee the scheme's proper execution,(4)designing a more rational evaluation mechanism to avoid the present design deviations in the sense of incentive mechanisms,(5)improving the early warning system to resolve its accuracy issues in warning signals for CRMAL,(6)constructing a monitoring platform,based on big data,to attack information asymmetry problems in CRMAL.In summary,this thesis investigates credit risk management after loan for ‘Shanrong Loan Business' designed by Hengyang city branch of China Construction Bank,and an optimized scheme for improving CRMAL is proposed,which could be further utilized by other domestic commercial banks when they carry out credit risk management after loan to small and micro businesses.