Credit Risk Management in Chinese Banking Industry

Zhang, Lei (2006) Credit Risk Management in Chinese Banking Industry. [Dissertation (University of Nottingham only)] (Unpublished)

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Credit risk is by far the most important risk faced by banks, and it influences the bank profitability and its long-term operation significantly. Well management on credit risk can be a competitive advantage for banks in the competitive banking industry.

Chinese banks suffer from serious financial fragility manifested by high proportions of NPLs and low capital adequacy ratios (Bonin and Huang, 2001). This dissertation examines the real credit performance of Chinese banks based on the ratio comparisons with US banks. Due to the importance of China state owned banks, a focused analysis on state owned banks shows the serious problem of state owned banks. Even if there is an improvement on the NPL ratio of those banks, the real credit situation of state owned banks is even worse.

Based on the guidance provided by Basel Committee (1999) and the international experiences in dealing with NPLs, it is important for China state owned banks to operate in a commercial basis with improved internal control and external monitor systems for its long term-success under the fierce competition after the commitment to WTO.

Item Type: Dissertation (University of Nottingham only)
Keywords: Credit risk, Non performing loans.
Depositing User: EP, Services
Date Deposited: 30 Nov 2006
Last Modified: 05 Feb 2018 12:23

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