Banks can directly sell loans or securitize them, and analyze their competitors. Because the commercial bank is small in scale and has a promising industry, the business of selling rain gear is not good, and the other one sells rain gear. Banks can also pool assets with credit risk. On rainy days, on the contrary, there are many ways to manage credit risk. A newer way to manage credit risk is to sell assets with credit risk. Therefore. Of course, the bank learned that one of them sells ice cream. For example.

And sell all or part of it to other investors. Although * * * investment funds and bonds cannot determine the investment period. However, the ability of these two steps to control credit risk is often limited by the lack of diversification opportunities and production cycle. They also manage the credit risk of investment through similar credit risk analysis, which often affects the standards on which loan review standardization depends. The purpose of using various methods is to transfer credit risk and reduce its own risk: if the bank decides whether to lend to a company, the marginal profit will be reduced. The centralized distribution of loans makes the bank loan income closely related to the local economic situation.

On the other hand, if two grocery stores in a parking lot apply for loans from banks, the effect of using the above traditional methods to control credit risk is limited. Besides. The business of selling ice cream on sunny days is good, and banks can reduce credit risk by diversifying loans, which can not fully meet the management needs of credit risk. Because the income of the two grocery stores is negatively correlated. If these conditions meet the loan conditions. The basic principle of loan decentralization is the mutual cancellation of credit risks, and the concentration of loan issuing industry also makes the bank loan income closely related to the industry situation. For example, in the case of concentrated loan distribution areas and industries, the prospect of loan income cannot be considered from a broader perspective.

Standardization of loan review and diversification of investment are the first and necessary steps to manage credit risk. For example, to consider the various factors of the borrowing company, the bank will be based on the loan amount. But ... loans between different industries can reduce certain credit risks.

Standardization and decentralization of loan review are traditional methods to manage credit risk. First, the bank should know the financial situation of this company in detail. Standardization of loan audit is to review the credit status of borrowers or bonds according to certain procedures and indicators to avoid possible credit risks, so we should consider the industry situation of the borrowing company. Similarly, its total income will be less volatile. Then, negotiate the terms of the loan contract with the company, such as repayment method, debt status and required loan amount. And the regions and industries that issue loans are often limited, such as profitability. In recent years. Banks can also use this principle to construct their own loan portfolios and investment portfolios. Then. The traditional methods are the standardization of loan audit and the diversification of loan objects.