The performance and prevention of credit risks of commercial banks in China

Credit risk is not only the most important and oldest form of risk in the financial markets, but also the most decisive financial risk in the face of the economic subjects in the current market environment. It directly affects all aspects of modern economic, and also a country's macroeconomic policy-making and economic development, and it even affects the stability and coordination of the global economic. But in China, commercial banks with the flaws in their systems and their backward in management means are encountering serious credit risks. In this paper, through summarizing the credit of China's commercial banks and studying the root causes of these problems, some possible effective advices are put forward to resolve the credit risks of commercial banks. © 2011 IEEE.