Credit Risk Management in Chinese Banking Industry

Abstract 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...

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Main Author: Zhang, Lei
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2006
Subjects:
Online Access:https://eprints.nottingham.ac.uk/20375/
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author Zhang, Lei
author_facet Zhang, Lei
author_sort Zhang, Lei
building Nottingham Research Data Repository
collection Online Access
description Abstract 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.
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spelling nottingham-203752018-02-05T12:23:31Z https://eprints.nottingham.ac.uk/20375/ Credit Risk Management in Chinese Banking Industry Zhang, Lei Abstract 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. 2006 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20375/1/06MAlixlz15.pdf Zhang, Lei (2006) Credit Risk Management in Chinese Banking Industry. [Dissertation (University of Nottingham only)] (Unpublished) Credit risk Non performing loans.
spellingShingle Credit risk
Non performing loans.
Zhang, Lei
Credit Risk Management in Chinese Banking Industry
title Credit Risk Management in Chinese Banking Industry
title_full Credit Risk Management in Chinese Banking Industry
title_fullStr Credit Risk Management in Chinese Banking Industry
title_full_unstemmed Credit Risk Management in Chinese Banking Industry
title_short Credit Risk Management in Chinese Banking Industry
title_sort credit risk management in chinese banking industry
topic Credit risk
Non performing loans.
url https://eprints.nottingham.ac.uk/20375/