credit risk
The formation of credit risk is a gradual process from germination, accumulation to occurrence. Before the repayment period expires, the borrower's financial and commercial conditions have undergone major adverse changes, which may affect its performance ability. In addition to the general default clause and guarantee, the lender can also stipulate "cross-default clause" in the contract. The basic meaning of cross-default is that if the debtor under this contract defaults under other loan contracts, it is also regarded as a breach of this contract. Generally speaking, creditors hold the debtor liable for breach of contract on the grounds that the parties fail to perform their obligations under this contract, but the cross-default clause breaks through this restriction and smacks of "strike first, then suffer", that is, trying to take relief measures before the borrower's debts under other loan contracts are in repayment crisis, so as to avoid falling into a worse situation than other creditors. Although this form of breach of contract is not clearly stipulated in the current law of our country, it does not violate the relevant jurisprudence and legal spirit of the contract law, and the right of uneasy defense in the current contract law can be used as the legal basis for its application. Therefore, the cross-default clause can be written into the contract as an agreed clause, so that the lender can fully grasp the borrower's credit level in time.
credit risk
Credit risk, also known as default risk, refers to the risk of economic loss caused by the counterparty's failure to perform the obligations in the agreed contract, that is, the possibility that the trustee can't perform the obligation of repaying the principal and interest, which makes the expected income of the grantor deviate from the actual income. This is the main type of financial risk. In the past few years, credit derivatives using new financial instruments to manage credit risk have developed rapidly. Proper use of credit derivatives can reduce the credit risk of investors. According to industry estimates, the credit derivatives market has only developed for a few years, with a global transaction volume of $20 billion in 1995.
Question 2: risk overview of credit risk The types of credit risk can generally be divided into market risk and non-market risk. Market risk mainly comes from the production and sales risk of the enterprise (borrower) (that is, the risk caused by the change of market conditions and production technology in the process of producing and selling goods by the borrower; Non-market risks mainly refer to natural risks and social risks. Natural risk refers to the risk that the borrower suffers economic losses due to natural factors and cannot repay the credit principal and interest; Social risk refers to the risk caused by the behavior of individuals or groups in society. The prevention of credit risk of commercial banks is mainly the prevention of bad credit. There is a famous saying in ICBC's credit manual: "No matter how high the interest we charge, it is difficult to make up for the loss of credit principal!" In 2002, China fully implemented the five-level credit classification system, and classified bank credit assets into five categories according to the degree of credit risk: normal, concerned, secondary, suspicious and loss. Bad credit mainly refers to subprime, suspicious and loss-making credit. Bank credit risk refers to the possibility that the actual income results deviate from the expected income target due to various uncertain factors in the process of bank operation and management, and there is the possibility of asset loss. Credit risk refers to the possibility that the borrowing enterprise can't repay the credit principal and interest on time for various reasons, which makes the bank's funds suffer losses. Credit business occupies a considerable proportion in bank credit business, with the characteristics of high risk and outstanding income, and occupies an important position in the operation of the whole bank. Therefore, it is of great significance to study credit risk. Generally speaking, the credit risk of commercial banks has the following characteristics: (1) Objectivity As long as there is credit activity, credit risk does not exist objectively regardless of people's will. To be exact, risk-free credit activities do not exist in real banking work. (2) The uncertainty loss of implicit credit itself is likely to be covered up by its appearance because of its credit characteristics. (3) Diffusibility. The loss of bank funds caused by credit risk not only affects the survival and development of the bank itself, but also causes a chain reaction. (4) Controllability means that banks can identify and predict risks in advance, and take precautions in the process and resolve them afterwards according to certain methods and systems. Main risks and countermeasures of commercial bank credit. Operational risk 1) the concept of operational risk: the fulfillment of the commitment to enter the market makes China's financial market more open to the outside world, and local commercial banks face more fierce competition, which puts higher demands on the risk management of commercial banks. However, the operational risks caused by the lack of property rights, internal control mechanism and improper process design of local commercial banks are increasingly prominent. According to the definition given by the Basel Committee in paragraph of the agreement, operational risk refers to the risk of loss caused by imperfect or problematic internal procedures, personnel and systems or external events. According to the causes of risks, operational risks can be subdivided into two categories: one is the risk of operation failure or mistake, including personnel risk, process risk and technical risk; The other is operational strategy risk, which refers to the risk of loss caused by improper strategy when dealing with external events or external environment, such as politics, taxation, supervision, * * *, society and market competition. The former is mainly related to internal control efficiency or management quality, also known as internal risk, while the latter is mainly related to external events, also known as external events or external dependence risk. 2) Operational risk management countermeasures and suggestions to solve operational risks. According to the new agreement, there are three main methods: basic index method, standard method and internal model method. The core is to allocate capital according to different risk weights. As for China Commercial Bank, it is difficult to collect data on the operational risk of personal housing credit, and the business development time is short, so it is basically impossible to conduct statistics and information simulation. The unpredictability of operational risk is particularly prominent in China. Therefore, the more realistic approach is to prevent operational risks from the following four aspects: 1. Strengthen the management of process 1, check and sort out the existing processes, and eliminate possible loopholes. Although all commercial banks in China have laws and regulations departments and risk management departments, there is no special operational risk management department, not to mention the operational risk management department of personal housing credit. There are many loopholes in the loan contract and loan process, which will seriously affect the business development if they are not corrected as soon as possible. Conduct careful analysis and market research on newly developed products to avoid blind investment, ineffective investment and high-risk investment. The product renewal of personal housing credit business has been gradually accelerated, and various behaviors have seized market share, making a lot of innovations in repayment methods, guarantee methods, handling methods and many other aspects. However, it is doubtful whether these innovations have undergone sufficient market research and strict operational risk review. It is understood that business in China ...
Question 3: What are the general aspects of credit risk and how to control it? Generally speaking, credit risk mainly includes credit risk, market risk and operational risk. In layman's terms, it is whether the borrower is a fraudster, just to cheat money, or there is a risk of not paying back the money. Generally speaking, how to control risks mainly starts from three aspects. One is pre-loan background investigation, mainly to check whether the borrower's information is true and repayment ability. The second is to follow up after the loan, mainly to check whether the borrower used the money according to the instructions when borrowing; The third is collection, mainly when the borrower runs away or defaults. However, for traditional credit enterprises, there are more and more online businesses, but there are many shortcomings in controlling risks only by traditional risk control means, such as the efficiency of auditing and lending. Therefore, more and more credit companies have turned their attention to third-party risk control software. From the media reports, we can see that the top 100 credit companies in China are using third-party risk control software, especially the risk control software of Hangzhou Tongdun Technology, which basically covers the existing credit companies.
Question 4: What is the credit risk of commercial banks? Overview of credit risk of commercial banks. The types of credit risk can generally be divided into two categories: market risk and non-market risk. Market risk mainly comes from the production and sales risk of the enterprise (borrower) (that is, the risk caused by the change of market conditions and production technology in the process of producing and selling goods by the borrower; Non-market risks mainly refer to natural risks and social risks. Natural risk refers to the risk that the borrower suffers economic losses due to natural factors and cannot repay the credit principal and interest; Social risk refers to the risk caused by the behavior of individuals or groups in society. The prevention of credit risk of commercial banks is mainly the prevention of bad credit.
Question 5: What does it mean that loans are always outside the scope of risk definition? Banks and credit companies will list some unacceptable customer groups. These groups have high risks and are a means to avoid risks. You were rejected because you belong to a risk group.
Question 6: What are the causes of credit risk? The National Training Institute's "Small Loan Company 100 Question" and the National Training Institute's microfinance efficient risk control course mentioned that:
(1) Credit risk
Credit risk, also known as default risk, refers to a loan risk caused by the borrower or individual's inability or unwillingness to repay the principal and interest of the loan.
(2) Interest rate risk
Interest rate risk, also known as market risk, refers to the possibility that the matching of the term, quantity and method of village loan interest rate caused by the change of market interest rate will cause losses to credit institutions.
(3) Internal risks
Internal risk is also called management risk or operational risk.
(4) Liquidity risk
The risk of liquidity is that the number of liquid assets held by banks is not enough to meet the needs of payment, so banks may be illiquid.
(5) Competition risk
Competitive risk refers to the possibility of reducing customers, increasing costs and reducing profits due to competition in the same industry.
(6) Policy risk
Policy risk is also called national risk. This kind of risk is often accompanied by the adjustment of national economic principles, policies and plans.
Question 7: How to guard against the significance of bank credit risk? With the gradual improvement of market economy and the deepening of financial system reform, the pace of transition from state-owned specialized banks to state-owned commercial banks is getting faster and faster, thus exposing the financial problems accumulated over the years and making the potential financial risks increasingly superficial. Therefore, preventing and resolving financial risks is an urgent problem faced by state-owned commercial banks, which must be paid enough attention and effective measures should be taken as soon as possible. I. Causes of Credit Risk 1. Centralized reflection of historical problems accumulated for a long time. In the past, under the planned economy system, banks operated and managed at different levels. As a state-owned commercial bank, administrative decision-making under the planned economy system has been transformed into scientific decision-making under the market economy conditions. In this process, the latent credit problems under the old system gradually emerged in two aspects: first, the enterprise risks were hidden for a long time, exposed after accumulation, and non-performing loans were concentrated. Due to historical reasons, banks have established close relations with state-owned enterprises. Most of the funds of enterprises come from banks, and most of the assets of banks are also loans to enterprises. The two are as close as lips and teeth, and have a life-and-death relationship. Under the planned economy system, enterprises carry out production and business activities according to the national plan, with the main purpose of completing the planned tasks. The products produced are uniformly allocated by the state and are not sold to the outside world. Operating losses are made up by the state, and enterprises do not need to bear them themselves. At this point, the business risk of the enterprise has not yet been formed or exposed. The corresponding bank loan has no risk or less risk. However, with the deepening of reform, market regulation has replaced planned management, and enterprises have the right to operate independently and bear the responsibility of self-financing. As a result, the problem of long-term accumulation of enterprises began to be exposed. As a result, non-performing loans began to appear, and the business risk of enterprises shifted to the credit risk of banks. Especially in the process of changing the operating mechanism of state-owned enterprises, a large number of personnel burdens, debt burdens and social burdens left over from history are left behind in the old enterprises, so that a large number of bank loans were suspended before the original restructuring. Therefore, the current problem of bank loan quality is largely the result of long-term hidden and accumulated business risks. Second, banks used to issue a lot of policy loans, but now they have basically become non-performing loans. Before the promulgation of the Law on Commercial Banks, the status of state-owned commercial banks as enterprise legal persons had not been established, and the right of independent management had not been implemented. Many policy loans are issued under the intervention of local administration. Especially before the establishment of national policy banks, commercial banks have undertaken a considerable number of policy loans, which are distributed to single-family enterprises and single projects after coordination by banks. Most of these loans are risky. At present, a considerable number of loan quality problems are caused by policy factors. Second, it is closely related to the excessive debt and poor efficiency of state-owned enterprises. Under the planned economy system, the fixed assets investment and a considerable part of working capital of state-owned enterprises depend on the state financial allocation. By the mid-1980s, after the implementation of the "change from appropriation to loan", the capital of enterprises was basically not increased, and the sources of funds for reproduction of enterprises were expanded, from financial allocation to bank loans. With the continuous expansion of production scale, the capital occupation is gradually increasing. However, the depreciation rate of state-owned enterprises is generally low, the self-accumulation is insufficient, the asset-liability ratio is getting higher and higher, and the dependence on bank loans is getting stronger and stronger. They rely on a lot of bank loans to maintain their production and operation. Especially in recent years, China's economic development is difficult, and the reform of state-owned enterprises is difficult. Most state-owned enterprises are losing money and their operating conditions are not good. The main part of the liabilities of these enterprises is bank loans, which have been occupied by short-term loans for a long time. The financial strength is seriously insufficient, the capital turnover is ineffective, and the ability to resist risks is very low. When the market changes slightly and marketing is difficult, the capital flow is immediately blocked, and the solvency is greatly reduced, which directly affects the security of bank loan funds. In this case, corporate risks will inevitably be passed on to banks to a considerable extent. Even for a few enterprises with good benefits, due to the high asset-liability ratio and heavy interest burden, it is difficult to recover the loan when it expires. Enterprises can pay the loan interest on time, but banks keep granting extensions, and the problem of loan quality has not been exposed. Once the bank stops renewing loans, non-performing loans are immediately exposed. This is an important factor affecting the quality of loans. Third, it has something to do with the way banks operate and manage. Mainly manifested in: First, put efficiency first in operation, while ignoring safety. The Law on Commercial Banks stipulates that "commercial banks should take efficiency, safety and liquidity as their operating principles". Putting efficiency in the first place and safety in the second place will have a certain impact on the operation of banks. & gt
Question 8: What is the credit risk of commercial banks?
Basic explanation
The formation of credit risk is a gradual process from germination, accumulation to occurrence. Before the repayment period expires, the borrower's financial and commercial conditions have undergone major adverse changes, which may affect its performance ability. In addition to the general default clause and guarantee, the lender can also stipulate "cross-default clause" in the contract. The basic meaning of cross-default is that if the debtor under this contract defaults under other loan contracts, it is also regarded as a breach of this contract. Generally speaking, creditors hold the debtor liable for breach of contract on the grounds that the parties fail to perform their obligations under this contract, but the cross-default clause breaks through this restriction and smacks of "fighting first and then suffering", that is, trying to take relief measures before the repayment crisis of the borrower's debts under other loan contracts, so as to avoid falling into a worse situation than other creditors. Although this form of breach of contract is not clearly stipulated in the current law of our country, it does not violate the relevant jurisprudence and legal spirit of the contract law, and the right of uneasy defense in the current contract law can be used as the legal basis for its application. Therefore, the cross-default clause can be written into the contract as an agreed clause, so that the lender can fully grasp the borrower's credit level in time.
Problems and Countermeasures in Credit Management of Commercial Banks
Broadly speaking, the credit management of commercial banks includes: formulating and implementing credit policies, establishing and improving the internal authorized credit system, formulating, implementing and implementing credit operation procedures, establishing credit risk monitoring mechanism and many other coordinated and restrictive institutional systems and their supervision systems for the implementation effect of the systems. In a narrow sense, the credit management of commercial banks only refers to the investigation before the loan is issued, the management during the loan period and the supervision, control and treatment after the loan risk appears. This paper adopts the concept of credit management of commercial banks in a narrow sense, and tries to put forward the basic ideas and practical countermeasures to solve this problem on the basis of analyzing the existing problems in credit management of commercial banks. At present, the main problems existing in credit management of commercial banks are as follows: First, the basic management is weak and credit files are seriously missing. Mainly manifested in the lack of financial information of borrowers and guarantors, loan mortgage vouchers, post-loan inspection reports, collection notices and other information. Credit file is a record of the whole process of loan issuance, management and recovery. Its omissions, especially some incomplete legal documents, not only make it difficult to analyze the risk of loans, but also constitute an obstacle to collecting loans according to law. Two, there is no strict implementation of the loan separation system. Mainly manifested in: (1) the establishment of a separate institution for examination and loan is slow; The loan examination and approval institution is a mere formality. For example, loan officers often fill in loan contracts, IOUs and other legal documents and loan vouchers before loan approval. The signing date of contracts and IOUs is earlier than the loan approval date, and the loan amount and term are different from those approved. Three, the loan "three checks" system is not implemented. Mainly manifested in: first, the pre-loan investigation is a mere formality; Second, the review and submission of loans are not strict; Third, the post-loan inspection tracks the lender's loan usage on the surface, ignoring the tracking investigation of the borrower's post-loan credit status, changes in collateral, guarantor's operation and changes in contingent liabilities. Four, the loan handling personnel have weak legal knowledge and legal awareness, and the loan loses legal protection. There are mainly the following problems: (1) the guarantor's qualification does not meet the conditions stipulated by law; (2) Some commercial banks have not carefully examined the legality and effectiveness of collateral; (3) If mortgage registration should be carried out in accordance with the guarantee law, mortgage registration is not carried out in accordance with the law, resulting in invalid mortgage behavior; (four) without the written consent of the guarantor, the main terms of the main contract are changed, the performance period of the main debt is extended or the debt amount of the main debtor is increased, which makes the guarantee contract invalid or partially invalid; (5) we can't make full use of the provisions of the law on the interruption or suspension of the limitation of action to safeguard the right of banks to collect loans according to law. Five, the internal supervision mechanism is not perfect, there are loopholes in the credit management system, ignoring the management of managers. The main manifestations are as follows: (1) Some grass-roots governors have too much power, and the supervision and restraint mechanism has not really played a role, which has led to some grass-roots governors arbitrarily approving loans, investing indiscriminately and guaranteeing indiscriminately; (2) the loan responsibility cannot be implemented, which eventually leads to no one being responsible and going away; (3) The unscientific assessment method of the president's business objectives encourages the short-term behavior of the president's business. In order to accomplish the goal and task, he had to take illegal measures. ......& gt& gt
Question 9: Classification of loan risks of commercial banks. Commercial banks should at least divide loans into five categories: normal, concerned, secondary, suspicious and loss, and the latter three categories are collectively referred to as non-performing loans.
Normal: The borrower can perform the contract, and there is no sufficient reason to suspect that the loan principal and interest cannot be repaid in full and on time.
Note: Although the borrower has the ability to repay the loan principal and interest at present, there are some factors that may adversely affect the repayment.
Secondary: The borrower has obvious problems in repayment ability, and cannot fully repay the loan principal and interest by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses.
Suspicious: the borrower can't repay the loan principal and interest in full, even if the guarantee is implemented, it will definitely cause great losses.
Loss: After taking all possible measures or all necessary legal procedures, the principal and interest are still unrecoverable, or only a small part can be recovered.
Commercial banks should mainly consider the following factors when classifying loans:
(1) The borrower's repayment ability.
(2) the borrower's repayment record.
(3) The borrower's willingness to repay.
(four) the profitability of the loan project.
(5) loan guarantee.
(six) the legal responsibility to repay the loan.
(7) Credit management of banks.
When classifying loans, the evaluation of the borrower's repayment ability should be the core, the borrower's normal operating income should be the main source of repayment, and the loan guarantee should be the secondary source of repayment.