商业银行信贷风险管理外文翻译

商业银行信贷风险管理外文文献翻译中文3000多字Credit risk management is a XXX business。

financing ns。

payment and settlement。

and other XXX。

credit XXX risk factor for commercial banks。

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This involves identifying and assessing potential risks。

XXX strategies。

XXX。

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commercial banks XXX the potential for credit losses.One of the key components of credit risk management iscredit analysis。

This involves evaluating the orthiness of borrowers to determine the likelihood of default。

Credit analysis XXX's financial history。

credit score。

collateral。

XXX credit analysis。

commercial banks can make informed lending ns and minimize the risk of default.Another important aspect of credit risk management is credit XXX can also help commercial banks XXX.In n。

外文文献翻译Commercial Bank Risk Management: An Analysis of the Process外文文献：Commercial Bank Risk Management: An Analysis of the Process AbstractThroughout the past year, on-site visits to financial service firms were conducted to review and evaluate their financial risk management systems. The commercial banking analysis covered a number of North American super-regionals and quasi±money-center institutions as well as several firms outside the U.S. The information obtained covered both the philosophy and practice of financial risk management. This article outlines the results of this investigation. It reports the state of risk management techniques in the industry. It reports the standard of practice and evaluates how and why it is conducted in the particular way chosen. In addition, critiques are offered where appropriate. We discuss the problems which the industry finds most difficult to address, shortcomings of the current methodology used to analyze risk, and the elements that are missing in the current procedures of risk management.1. IntroductionThe past decade has seen dramatic losses in the banking industry. Firms that had been performing well suddenly announced large losses due to credit exposures that turned sour, interest rate positions taken, or derivative exposures that may or may not have been assumed to hedge balance sheet risk. In response to this, commercial banks have almost universally embarked upon an upgrading of their risk management and control systems.Coincidental to this activity, and in part because of our recognition of the industry's vulnerability to financial risk, the Wharton Financial Institutions Center, with the support of the Sloan Foundation, has been involved in an analysis of financial risk management processes in the financial sector. Through the past academic year, on-site visits were conducted to review and evaluate the risk management systems and the process of risk evaluation that is in place. In the banking sector, system evaluation was conducted covering many of North America'ssuper-regionals and quasi±money-center commercial banks, as well as a number of major investment banking firms. These results were then presented to a much wider array of banking firms for reaction and verification. The purpose of the present article is to outline the findings of this investigation. It reports the state of risk management techniques in the industry—questions asked, questions answered, and questions left unaddressed by respondents. This report can not recite a litany of the approaches used within the industry, nor can it offer an evaluation of each and every approach. Rather, it reports the standard of practice and evaluates how and why it is conducted in the particular way chosen. But, even the best practice employed within the industry is not good enough in some areas. Accordingly, critiques also will be offered where appropriate. The article concludes with a list of questions that are currently unanswered, or answered imprecisely in the current practice employed by this group of relatively sophisticated banks. Here, we discuss the problems which the industry finds most difficult to address, shortcomings of the current methodology used to analyze risk, and the elements that are missing in the current procedures of risk management and risk control.2. What type of risk is being considered?Commercial banks are in the risk business. In the process of providing financial services, they assume various kinds of financial risks. Over the last decade our understanding of the place of commercial banks within the financial sector has improved substantially. Over this time, much has been written on the role of commercial banks in the financial sector, both in the academic literature and in the financial press. These arguments will be neither reviewed nor enumerated here. Suffice it to say that market participants seek the services of these financial institutions because of their ability to provide market knowledge, transaction efficiency and funding capability. In performing these roles, they generally act as a principal in the transaction. As such, they use their own balance sheet to facilitate the transaction and to absorb the risks associated with it.To be sure, there are activities performed by banking firms which do not have direct balance sheet implications. These services include agency and advisoryactivities such as(1) trust and investment management;(2) private and public placements through ``bestefforts'' or facilitating contracts;(3) standard underwriting through Section 20 Subsidiaries of the holding company;(4) the packaging, securitizing, distributing, and servicing of loans in the areas of consumer and real estate debt primarily.These items are absent from the traditional financial statement because the latter rely on generally accepted accounting procedures rather than a true economic balance sheet. Nonetheless,the overwhelming majority of the risks facing the banking firm are on-balance-sheet businesses. It is in this area that the discussion of risk management and of the necessary procedures for risk management and control has centered. Accordingly, it is here that our review of risk management procedures will concentrate.3. What kinds of risks are being absorbed?The risks contained in the bank's principal activities, i.e., those involving its own balance sheet and its basic business of lending and borrowing, are not all borne by the bank itself. In many instances the institution will eliminate or mitigate the financial risk associated with a transaction by proper business practices; in others, it will shift the risk to other parties through a combination of pricing and product design.The banking industry recognizes that an institution need not engage in business in amanner that unnecessarily imposes risk upon it; nor should it absorb risk that can be efficiently transferred to other participants. Rather, it should only manage risks at the firm level that are more efficiently managed there than by the market itself or by their owners in their own portfolios. In short, it should accept only those risks that are uniquely a part of the bank's array of services. Elsewhere (Oldfield and Santomero, 1997) it has been argued that risks facing all financial institutions can be segmented into three separable types, from a management perspective. These are:1. risks that can be eliminated or avoided by simple business practices;2. risks that can be transferred to other participants;3. risks that must be actively managed at the firm level.In the first of these cases, the practice of risk avoidance involves actions to reduce the chances of idiosyncratic losses from standard banking activity by eliminating risks that are superˉuous to the institution's business purpose. Common risk-avoidance practices here include at least three types of actions. The standardization of process, contracts, and procedures to prevent inefficient or incorrect financial decisions is the first of these. The construction of portfolios that benefit from diversification across borrowers and that reduce the effects of any one loss experience is another. The implementation of incentivecompatible contracts with the institution's management to require that employees be held accountable is the third. In each case, the goal is to rid the firm of risks that are not essential to the financial service provided, or to absorb only an optimal quantity of a particular kind of risk.There are also some risks that can be eliminated, or at least substantially reduced through the technique of risk transfer. Markets exist for many of the risks borne by the banking firm. Interest rate risk can be transferred by interest rate products such as swaps or other derivatives. Borrowing terms can be altered to effect a change in their duration.Finally, the bank can buy or sell financial claims to diversify or concentrate the risks that result from servicing its client base. To the extent that the financial risks of the assets created by the firm are understood by the market, these assets can be sold at their fair value. Unless the institution has a comparative advantage in managing the attendant risk and/or a desire for the embedded risk which they contain, there is no reason for the bank to absorb such risks, rather than transfer them.However, there are two classes of assets or activities where the risk inherent in the activity must and should be absorbed at the bank level. In these cases, good reasons exist for using firm resources to manage bank level risk. The first of these includes financial assets or activities where the nature of the embedded risk may be complex and difficult to communicate to third parties. This is the case when the bank holds complex and proprietary assets that have thin, if not nonexistent, secondarymarkets. Communication in such cases may be more difficult or expensive than hedging the underlying risk. Moreover, revealing information about the customer may give competitors an undue advantage. The second case includes proprietary positions that are accepted because of their risks, and their expected return. Here, risk positions that are central to the bank's business purpose are absorbed because they are the raison of the firm. Credit risk inherent in the lending activity is a clear case in point, as is market risk for the trading desk of banks active in certain markets. In all such circumstances, risk is absorbed and needs to be monitored and managed efficiently by the institution. Only then will the firm systematically achieve its financial performance goal.4. How are these risks managed?In light of the above, what are the necessary procedures that must be in place in order to carry out adequate risk management? In essence, what techniques are employed to both limit and manage the different types of risk, and how are they implemented in each area of risk control? It is to these questions that we now turn. After reviewing the procedures employed by leading firms, an approach emerges from an examination of large-scale risk management systems. The management of the banking firm relies on a sequence of steps to implement a risk management system. These can be seen as containing the following four parts:1. standards and reports,2. position limits or rules,3. investment guidelines or strategies, and4. incentive contracts and compensation.In general, these tools are established to measure exposure, define procedures to manage these exposures, limit individual positions to acceptable levels, and encourage decision makers to manage risk in a manner that is consistent with the firm's goals and objectives. To see how each of these four parts of basic risk-management techniques achieves these ends, we elaborate on each part of the process below. In section 4 we illustrate how these techniques are applied to manage each of the specific risks facing the banking community.1.Standards and reports.The first of these risk-management techniques involves two different conceptual activities, i.e., standard setting and financial reporting. They are listed together because they are the sine qua non of any risk system. Underwriting standards, risk categorizations, and standards of review are all traditional tools of risk management and control. Consistent evaluation and rating of exposures of various types are essential to an understanding of the risks in the portfolio, and the extent to which these risks must be mitigated or absorbed.The standardization of financial reporting is the next ingredient. Obviously, outside audits, regulatory reports, and rating agency evaluations are essential for investors to gauge asset quality and firm-level risk. These reports have long been standardized, for better or worse. However, the need here goes beyond public reports and audited statements to the need for management information on asset quality and risk posture. Such internal reports need similar standardization and much more frequent reporting intervals, with daily or weekly reports substituting for the quarterly GAAP periodicity.2.Position limits and rules.A second technique for internal control of active management is the use of position limits, and/or minimum standards for participation. In terms of the latter, the domain of risk taking is restricted to only those assets or counterparties that pass some prespecified quality standard. Then, even for those investments that are eligible, limits are imposed to cover exposures to counterparties, credits, and overall position concentrations relative to various types of risks. While such limits are costly to establish and administer, their imposition restricts the risk that can be assumed by anyone individual, and therefore by the organization as a whole. In general, each person who can commit capital will have a well-defined limit. This applies to traders, lenders,and portfolio managers. Summary reports show limits as well as current exposure by business unit on a periodic basis. In large organizations with thousands of positions maintained, accurate and timely reporting is difficult, but even more essential.3.Investment guidelines and strategies.Investment guidelines and recommended positions for the immediate future are the third technique commonly in use. Here, strategies are outlined in terms of concentrations and commitments to particular aras of the market, the extent of desired asset-liability mismatching or exposure, and the need to hedge against systematic risk of a particular type.4.Incentives schemes.To the extent that management can enter incentive compatible contracts with line managers and make compensation related to the risks borne by these individuals, then the need for elaborate and costly controls is lessened. However, such incentive contracts require accurate position valuation and proper internal control systems.中文译文：商业银行的风险管理：一个分析的过程摘要在过去一年里,我们通过现场参观金融服务公司来进行审查和评估其金融风险管理系统。

文献出处：Cornett M, Strahan P. The credit risk management of commercial banks [J]. Journal of Financial Economics, 2015, 101(2): 297-312.原文The credit risk management of commercial banksCornett M, Strahan PAbstractCredit risk is one of the most usual ones which any commercial banks may encounter during their operation. Credit risks of commercial banks not only cause losses which result in bankruptcy but also cause the most serious issues of financial and economic crisis of one nation. Referring to credit risk management of Vietnam commercial bank system，the capability of credit risks management of Vietnam commercial banks is still low; The rate of bad debt in the entire system is still much higher than international standards. Take this situation in consideration together with referring to a great number of documentations, I have studied credit risk management of the three typical commercial bank in Vietnam and analyzed and evaluated the remaining issues in the process of credit risk control by these banks and offer some relevant solutions to the entire system of domestic banks. In credit risk management, I shall focus mainly on unscientific features in econometrics methods of credit risk management issued by commercial banks in Vietnam，which is inclusive of combination of unclear mathematic method and class analysis one to calculate credit risks. Due to the fact that credit risk management after disbursement by most of commercial banks is still weak, it is quite needed to study management after disbursement, particularize the method of identifying credit asset debt, build five-class classification, carry out actual management of credit asset and base on tendency of bad debt to offer solutions for every time period. In conclusion, what motioned herein comes from credit risk management in consideration of prevention, calculation, change and solution as well as risk management institutions.Key words: Risk, credit risk, commercial bank credit.1 Commercial bank credit risk management theoryAlthough Banks have a long history, but the theoretical analysis of credit risk is a relatively short history. By kea ton (Keeton, 1979), stag Ritz and Weiss (Mr. Weiss, 1981) development and formation of the "incomplete information credit rationing models on the market", it is pointed out that the credit market credit risk not only the two typical forms of...Adverse selection and moral hazard, and demonstrates the root of the credit risk, information asymmetry caused by the principal-agent relationship, lead to the emergence of credit rationing. Credit risk management refers to the commercial Banks through the scientific method of various subjective factors could lead to credit losses effectively forecast, analysis, prevention, control and processing. In order to reduce the credit risk, reduce the credit losses and improve the quality of credit, to enhance the capacity of the commercial bank risk control and loss compensation ability of a credit management activity. Depth understanding of credit risk management from the following four to grasp. One is the basis of credit risk management is according to the characteristics of credit requirements, not against the objective law of credit; The second is the credit risk management is scientific, modernization, standardization, quantitative and comprehensive; Three is the credit risk management method is mainly credit risk analysis, risk identification, risk measurement, risk control and risk management; Four is the credit risk management goal is to reduce risk, reduce loss, enhance the ability of commercial Banks operating risk.In order to guarantee bank loans will not be against its customers, to customers, companies, enterprises, such as different customer types before they are allowed to make loans to consider some problems. Also the question bank standard of 5 cabaña will select credit analysis of 5 c as a measure of the basic elements of corporate credit risk:1.1 QualityThe debtor to meet its debt obligations will, is the first indicator of evaluate the credit quality of the debtor. Regarding the quality of the wholesale banking, measure, or can be based on the reputation of the company management/owner eventually andcompany strategy.1.2 AbilityThe debtor's solvency, include the trend of the vision of the industry, the sustainable development of the company; the financial data mainly embodied in the current ratio and quick ratio. The stability of the corporate cash income directly determines its solvency and probability of default.1.3 CapitalRefers to the capital structure of the debtor or quotas, which indicates that the background of the customer may repay debt, such as debt ratio) or the net value of fixed assets and other financial indicators, etc.Shadow of the company's capital structure financing strategy: equity financing and debt financing.1.4 EnvironmentCompany locates the environment and the adaptability to the environment. Including solvent could affect the debtor's political, economic and market environment, such as the dong to rise and cancel the export tax rebate. As the "green credit, supported by more and more countries and companies, sustainable risk also be incorporated into the environmental risk considerations.1.5 MortgageRepayment of the debt of other potential resources and the resources provided by the additional security. Refuse or insolvent debtor can be used as mortgage/collateral assets, for no credit record (such as trading for the first time) or credit record disputed the debtor2 The commercial bank credit risk management processIn order to effective credit risk management, commercial Banks should grasp the basic application of credit risk management. In general, the credit risk management process can be divided into credit credit risk identification, risk estimate and credit risk handling three phases:2.1 Credit risk identificationCredit risk identification is before in all kinds of credit risk, the risk types and to determine the cause of occurrence of a risk, analysis, in order to achieve the credit riskmeasurement and processing. Credit risk identification is a qualitative analysis of the risk, is the first step of credit risk management, which is the basis for the rest of the credit risk management. Customer rating system and credit risk classification of the two dimensional rating system is constitute the important content of risk identification. This chapter will make detailed description of the two parts. Before the credit investigation is the commercial bank credit risk identification is the most basic steps, bank loans to the customer before must know the borrowing needs of the clients and purpose. Credit investigation before the concrete has the following contents: understand the purpose of credit, credit purpose including: type, in line with the needs of the business purpose and credit product mix and match the borrower repayment source of credit and credit term and effective mortgage guarantee/warranty or other intangible support.2.2 Credit risk estimateCredit risk estimation is the possibility of Banks in credit risk and the fact that the risk to evaluate the extent of the losses caused by measurement. Its basic requirements: it is estimated that some expected risk the possibility of credit; 2 it is to measure some credit risk fact may cause the loss of the scale. Objective that is both a difficult problem, but such as is not an appraisal, can't the quantitative corresponding countermeasures to prevent and eliminate. With the development of risk management techniques, in the financial markets open, Vietnam's financial regulators and commercial Banks also pay more and more attention to the risk of quantitative, in credit rating and have a certain progress in capital adequacy.Before Banks to make loans to customers, Banks must also understand the purpose of the customer, more understand the usage of loan customers, whether it is feasible, from now on, find a way to manage future loans to avoid the violation of the customer. As a result, Banks should use the loan examination and approval way to deal with.2.3 The processing of credit riskCredit risk after processing is that the Banks in the recognition and valuation risk, the effective measures taken by different for different size of loan risk take differentprocessing method, make the credit risk is reduced to the lowest degree. Risk treatment methods mainly include: risk transfer refers to the bank assumes the credit risk on to others in some way. Transfer way, it is transferred to the customer, such as Banks to raise interest rates, require the borrower to provide mortgage, pledge or other additional conditions, etc.; 2 it is transferred to the insurance company, the bank will those particularly risky, once happened will loss serious loans directly to the insurance company insured, or by the customer to the insurance company insured to transfer risk;3 Commercial bank credit risk management regulation.In the risk management of commercial Banks to improve themselves at the same time, regulators and external credit rating agencies to the commercial bank credit risk management has a different regulation method.3.1 The China banking regulatory commission five classificationsThe CBRC requires commercial Banks asset quality for five categories, to reflect the face possible credit losses. System is classifying loans into five categories according to the inherent risk level could be divided into normal commercial loans, concern, loss of secondary, suspicious, five categories.The China banking regulatory commission five classifications has the advantage that the bank asset quality can be compared more easily, also can take credit quality of the whole global. Disadvantage is that some small and medium-sized Banks because of the lack of independent audit and internal audit, classification standard is difficult to unity, the China banking regulatory commission five classifications often find selective examination questions.3.2 Stress tests, a rating agencyRating agencies will be according to the information disclosure and audit results and adjusting the bank's credit rating. Stress test is a credit rating agency for checking the quality of commercial bank credit and common ways of anti-risk ability. Because of the influence of the stress tests, for what has happened, to predict the result may worsen the credit quality; Or for the possibility of events, predict the results of the impact of credit quality. Similar stress tests include, an industry is a strong shockcases the possibility of default, or large credit customer default could lead to credit quality decline.3.3 The new Basel capital accordNew Basel capital agreement hereinafter referred to as the new Basel agreement (hereinafter referred to as Basel II) in English, is by the bank for international settlements under the Basel committee on banking supervision (BCBS), and content for 1988 years the old Basel capital accord (Basel I) have had to make significant changes, in order to standardize the international risk management system, improve the international financial services of risk management ability.译文商业银行信贷风险管理作者：Cornett M, Strahan P摘要信贷风险是商业银行经营过程中所面临的最主要的风险之一。

毕业论文外文翻译 外文来源Commercial Bank Risk Management: An Analysis of the Process 中文译文商业银行表外业务风险控制2014年 3 月 15 日部 （系） 商 学 部 专 业 金 融 学 姓 名 学 号 指导老师Commercial Bank Risk Management: An Analysis ofthe ProcessRui HeTrends and issues in Commercial Bank Risk ManagementAbstractThroughout the past year, on-site visits to financial service firms were conducted to review and evaluate their financial risk management systems. The commercial banking analysis covered a number of North American super-regionals and quasi±money-center institutions as well as several firms outside the U.S. The information obtained covered both the philosophy and practice of financial risk management. This article outlines the results of this investigation. It reports the state of risk management techniques in the industry. It reports the standard of practice and evaluates how and why it is conducted in the particular way chosen. In addition, critiques are offered where appropriate. We discuss the problems which the industry finds most difficult to address, shortcomings of the current methodology used to analyze risk, and the elements that are missing in the current procedures of risk management.1. . IntroductionThe past decade has seen dramatic losses in the banking industry. Firms that had been performing well suddenly announced large losses due to credit exposures that turned sour, interest rate positions taken, or derivative exposures that may or may not have been assumed to hedge balance sheet risk. In response to this, commercial banks have almost universally embarked upon an upgrading of their risk management and control systems.Coincidental to this activity, and in part because of our recognition of theindustry's vulnerability to financial risk, the Wharton Financial Institutions Center, with the support of the Sloan Foundation, has been involved in an analysis of financial risk management processes in the financial sector. Through the past academic year, on-site visits were conducted to review and evaluate the risk management systems and the process of risk evaluation that is in place. In the banking sector, system evaluation was conducted covering many of North America's super-regionals and quasi±money-center commercial banks, as well as a number of major investment banking firms. These results were then presented to a much wider array of banking firms for reaction and verification. The purpose of the present article is to outline the findings of this investigation. It reports the state of risk management techniques in the industry—questions asked, questions answered, and questions left unaddressed by respondents. This report can not recite a litany of the approaches used within the industry, nor can it offer an evaluation of each and every approach. Rather, it reports the standard of practice and evaluates how and why it is conducted in the particular way chosen. But, even the best practice employed within the industry is not good enough in some areas. Accordingly, critiques also will be offered where appropriate. The article concludes with a list of questions that are currently unanswered, or answered imprecisely in the current practice employed by this group of relatively sophisticated banks. Here, we discuss the problems which the industry finds most difficult to address, shortcomings of the current methodology used to analyze risk, and the elements that are missing in the current procedures of risk management and risk control.2. What type of risk is being considered?Commercial banks are in the risk business. In the process of providing financial services, they assume various kinds of financial risks. Over the last decade our understanding of the place of commercial banks within the financial sector has improved substantially. Over this time, much has been written on the role of commercial banks in the financial sector, both in the academic literature and in the financial press. These arguments will be neither reviewed nor enumerated here.Suffice it to say that market participants seek the services of these financial institutions because of their ability to provide market knowledge, transaction efficiency and funding capability. In performing these roles, they generally act as a principal in the transaction. As such, they use their own balance sheet to facilitate the transaction and to absorb the risks associated with it.To be sure, there are activities performed by banking firms which do not have direct balance sheet implications. These services include agency and advisory activities such as(1) trust and investment management;(2) private and public placements through ``best efforts'' or facilitating contracts;(3) standard underwriting through Section 20 Subsidiaries of the holding company;(4) the packaging, securitizing, distributing, and servicing of loans in the areas of consumer and real estate debt primarily.These items are absent from the traditional financial statement because the latter rely on generally accepted accounting procedures rather than a true economic balance sheet. Nonetheless, the overwhelming majority of the risks facing the banking firm are on-balance-sheet businesses. It is in this area that the discussion of risk management and of the necessary procedures for risk management and control has centered. Accordingly, it is here that our review of risk management procedures will concentrate.3. What kinds of risks are being absorbed?The risks contained in the bank's principal activities, i.e., those involving its own balance sheet and its basic business of lending and borrowing, are not all borne by the bank itself. In many instances the institution will eliminate or mitigate the financial risk associated with a transaction by proper business practices; in others, it will shift the risk to other parties through a combination of pricing and product design.The banking industry recognizes that an institution need not engage in business in amanner that unnecessarily imposes risk upon it; nor should it absorb risk that canbe efficiently transferred to other participants. Rather, it should only manage risks at the firm level that are more efficiently managed there than by the market itself or by their owners in their own portfolios. In short, it should accept only those risks that are uniquely a part of the bank's array of services. Elsewhere (Old field and Santomero, 1997) it has been argued that risks facing all financial institutions can be segmented into three separable types, from a management perspective. These are:1. risks that can be eliminated or avoided by simple business practices;2. risks that can be transferred to other participants;3. risks that must be actively managed at the firm level.In the first of these cases, the practice of risk avoidance involves actions to reduce the chances of idiosyncratic losses from standard banking activity by eliminating risks that are superˉuous to the institution's business purpose. Common risk-avoidance practices here include at least three types of actions. The standardization of process, contracts, and procedures to prevent inefficient or incorrect financial decisions is the first of these. The construction of portfolios that benefit from diversification across borrowers and that reduce the effects of any one loss experience is another. The implementation of incentive compatible contracts with the institution's management to require that employees be held accountable is the third. In each case, the goal is to rid the firm of risks that are not essential to the financial service provided, or to absorb only an optimal quantity of a particular kind of risk.There are also some risks that can be eliminated, or at least substantially reduced through the technique of risk transfer. Markets exist for many of the risks borne by the banking firm. Interest rate risk can be transferred by interest rate products such as swaps or other derivatives. Borrowing terms can be altered to effect a change in their duration.Finally, the bank can buy or sell financial claims to diversify or concentrate the risks that result from servicing its client base. To the extent that the financial risks of the assets created by the firm are understood by the market, these assets can be sold at their fair value. Unless the institution has a comparative advantage in managing the attendant risk and/or a desire for the embedded risk which they contain, there is noreason for the bank to absorb such risks, rather than transfer them.However, there are two classes of assets or activities where the risk inherent in the activity must and should be absorbed at the bank level. In these cases, good reasons exist for using firm resources to manage bank level risk. The first of these includes financial assets or activities where the nature of the embedded risk may be complex and difficult to communicate to third parties. This is the case when the bank holds complex and proprietary assets that have thin, if not nonexistent, secondary markets. Communication in such cases may be more difficult or expensive than hedging the underlying risk. Moreover, revealing information about the customer may give competitors an undue advantage. The second case includes proprietary positions that are accepted because of their risks, and their expected return. Here, risk positions that are central to the bank's business purpose are absorbed because they are the raison of the firm. Credit risk inherent in the lending activity is a clear case in point, as is market risk for the trading desk of banks active in certain markets. In all such circumstances, risk is absorbed and needs to be monitored and managed efficiently by the institution. Only then will the firm systematically achieve its financial performance goal.4. How are these risks managed?In light of the above, what are the necessary procedures that must be in place in order to carry out adequate risk management? In essence, what techniques are employed to both limit and manage the different types of risk, and how are they implemented in each area of risk control? It is to these questions that we now turn. After reviewing the procedures employed by leading firms, an approach emerges from an examination of large-scale risk management systems. The management of the banking firm relies on a sequence of steps to implement a risk management system. These can be seen as containing the following four parts:1. standards and reports,2. position limits or rules,3. investment guidelines or strategies, and4. incentive contracts and compensation.In general, these tools are established to measure exposure, define procedures to manage these exposures, limit individual positions to acceptable levels, and encourage decision makers to manage risk in a manner that is consistent with the firm's goals and objectives. To see how each of these four parts of basic risk-management techniques achieves these ends, we elaborate on each part of the process below. In section 4 we illustrate how these techniques are applied to manage each of the specific risks facing the banking community.1.Standards and reports.The first of these risk-management techniques involves two different conceptual activities, i.e., standard setting and financial reporting. They are listed together because they are the sine qua non of any risk system. Underwriting standards, risk categorizations, and standards of review are all traditional tools of risk management and control. Consistent evaluation and rating of exposures of various types are essential to an understanding of the risks in the portfolio, and the extent to which these risks must be mitigated or absorbed.The standardization of financial reporting is the next ingredient. Obviously, outside audits, regulatory reports, and rating agency evaluations are essential for investors to gauge asset quality and firm-level risk. These reports have long been standardized, for better or worse. However, the need here goes beyond public reports and audited statements to the need for management information on asset quality and risk posture. Such internal reports need similar standardization and much more frequent reporting intervals, with daily or weekly reports substituting for the quarterly GAAP periodicity.2.Position limits and rules.A second technique for internal control of active management is the use of position limits, and/or minimum standards for participation. In terms of the latter, the domain of risk taking is restricted to only those assets or counterparties that pass some prespecified quality standard. Then, even for those investments that are eligible, limits are imposed to cover exposures to counterparties, credits, and overall positionconcentrations relative to various types of risks. While such limits are costly to establish and administer, their imposition restricts the risk that can be assumed by anyone individual, and therefore by the organization as a whole. In general, each person who can commit capital will have a well-defined limit. This applies to traders, lenders ,and portfolio managers. Summary reports show limits as well as current exposure by business unit on a periodic basis. In large organizations with thousands of positions maintained, accurate and timely reporting is difficult, but even more essential.3.Investment guidelines and strategies.Investment guidelines and recommended positions for the immediate future are the third technique commonly in use. Here, strategies are outlined in terms of concentrations and commitments to particular aras of the market, the extent of desired asset-liability mismatching or exposure, and the need to hedge against systematic risk of a particular type.4.Incentives schemes.To the extent that management can enter incentive compatible contracts with line managers and make compensation related to the risks borne by these individuals, then the need for elaborate and costly controls is lessened. However, such incentive contracts require accurate position valuation and proper internal control systems.商业银行的风险管理：一个分析的过程何瑞商业银行风险管理和相关问题摘要在过去一年里,我们通过现场参观金融服务公司来进行审查和评估其金融风险管理系统。

商业银行风险管理中英文对照外文翻译文献(文档含英文原文和中文翻译)“RISK MANAGEMENT IN COMMERCIAL BANKS”(A CASE STUDY OF PUBLIC AND PRIVATE SECTOR BANKS) - ABSTRACT ONLY1. PREAMBLE:1.1 Risk Management:The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. Credit risk is the oldest and biggest risk that bank, by virtue of its very nature of business, inherits. This has however, acquired a greater significance in the recent past for various reasons. Foremost among them is the wind of economic liberalization that is blowing across the globe. India is no exception to this swing towards market driven economy. Competition from within and outside the country has intensified. This has resulted in multiplicity of risks both in number and volume resulting in volatile markets. A precursor to successful management of credit risk is a clear understanding about risks involved in lending, quantifications of risks within each item of the portfolio and reaching a conclusion as to the likely composite credit risk profile of a bank.The corner stone of credit risk management is the establishment of a framework that defines corporate priorities, loan approval process, credit risk rating system, risk-adjusted pricing system, loan-review mechanism and comprehensive reporting system.1.2 Significance of the study:The fundamental business of lending has brought trouble to individual banks and entire banking system. It is, therefore, imperative that the banks are adequate systems for credit assessment of individual projects and evaluating risk associated therewith as well as the industry as a whole. Generally, Banks in India evaluate a proposal through the traditional tools of project financing, computing maximum permissible limits, assessing management capabilities and prescribing a ceiling for an industry exposure. As banks move in to a new high powered world of financial operations and trading, with new risks, the need is felt for more sophisticated and versatile instruments for risk assessment, monitoring and controlling risk exposures. It is, therefore, time that banks managements equip themselves fully to grapple with the demands of creating tools and systems capable of assessing, monitoring and controlling risk exposures in a more scientific manner.Credit Risk, that is, default by the borrower to repay lent money, remains the most important risk to manage till date. The predominance of credit risk is even reflected in the composition of economic capital, which banks are required to keep a side for protection against various risks. According to one estimate, Credit Risk takes about 70% and 30%remaining is shared between the other two primary risks, namely Market risk (change in the market price and operational risk i.e., failure of internal controls, etc.). Quality borrowers (Tier-I borrowers) were able to access the capital market directly without going through the debt route. Hence, the credit route is now more open to lesser mortals (Tier-II borrowers).With margin levels going down, banks are unable to absorb the level of loan losses. There has been very little effort to develop a method where risks could be identified and measured. Most of the banks have developed internal rating systems for their borrowers, but there hasbeen very little study to compare such ratings with the final asset classification and also to fine-tune the rating system. Also risks peculiar to each industry are not identified and evaluated openly. Data collection is regular driven. Data on industry-wise, region-wise lending, industry-wise rehabilitated loan, can provide an insight into the future course to be adopted.Better and effective strategic credit risk management process is a better way to Manage portfolio credit risk. The process provides a framework to ensure consistency between strategy and implementation that reduces potential volatility in earnings and maximize shareholders wealth. Beyond and over riding the specifics of risk modeling issues, the challenge is moving towards improved credit risk management lies in addressing banks’readiness and openness to accept change to a more transparent system, to rapidly metamorphosing markets, to more effective and efficient ways of operating and to meet market requirements and increased answerability to stake holders.There is a need for Strategic approach to Credit Risk Management (CRM) in Indian Commercial Banks, particularly in view of;(1) Higher NPAs level in comparison with global benchmark(2) RBI’ s stipulation about dividend distribution by the banks(3) Revised NPAs level and CAR norms(4) New Basel Capital Accord (Basel –II) revolutionAccording to the study conducted by ICRA Limited, the gross NPAs as a proportion of total advances for Indian Banks was 9.40 percent for financial year 2003 and 10.60 percent for financial year 20021. The value of the gross NPAs as ratio for financial year 2003 for the global benchmark banks was as low as 2.26 percent. Net NPAs as a proportion of net advances of Indian banks was 4.33 percent for financial year 2003 and 5.39 percent for financial year 2002. As against this, the value of net NPAs ratio for financial year 2003 for the global benchmark banks was 0.37 percent. Further, it was found that, the total advances of the banking sector to the commercial and agricultural sectors stood at Rs.8,00,000 crore. Of this, Rs.75,000 crore, or 9.40 percent of the total advances is bad and doubtful debt. The size of the NPAs portfolio in the Indian banking industry is close to Rs.1,00,000 crore which is around 6 percent of India’ s GDP2.The RBI has recently announced that the banks should not pay dividends at more than 33.33 percent of their net profit. It has further provided that the banks having NPA levels less than 3 percent and having Capital Adequacy Reserve Ratio (CARR) of more than 11 percent for the last two years will only be eligible to declare dividends without the permission from RBI3. This step is for strengthening the balance sheet of all the banks in the country. The banks should provide sufficient provisions from their profits so as to bring down the net NPAs level to 3 percent of their advances.NPAs are the primary indicators of credit risk. Capital Adequacy Ratio (CAR) is another measure of credit risk. CAR is supposed to act as a buffer against credit loss, which isset at 9 percent under the RBI stipulation4. With a view to moving towards International best practices and to ensure greater transparency, it has been decided to adopt the ’ 90 days’ ‘ over due’ norm for identification of NPAs from the year ending March 31, 2004.The New Basel Capital Accord is scheduled to be implemented by the end of 2006. All the banking supervisors may have to join the Accord. Even the domestic banks in addition to internationally active banks may have to conform to the Accord principles in the coming decades. The RBI as the regulator of the Indian banking industry has shown keen interest in strengthening the system, and the individual banks have responded in good measure in orienting themselves towards global best practices.1.3 Credit Risk Management(CRM) dynamics:The world over, credit risk has proved to be the most critical of all risks faced by a banking institution. A study of bank failures in New England found that, of the 62 banks in existence before 1984, which failed from 1989 to 1992, in 58 cases it was observed that loans and advances were not being repaid in time 5 . This signifies the role of credit risk management and therefore it forms the basis of present research analysis.Researchers and risk management practitioners have constantly tried to improve on current techniques and in recent years, enormous strides have been made in the art and science of credit risk measurement and management6. Much of the progress in this field has resulted form the limitations of traditional approaches to credit risk management and with the current Bank for International Settlement’ (BIS) regulatory model. Even in banks which regularly fine-tune credit policies and streamline credit processes, it is a real challenge for credit risk managers to correctly identify pockets of risk concentration, quantify extent of risk carried, identify opportunities for diversification and balance the risk-return trade-off in their credit portfolio.The two distinct dimensions of credit risk management can readily be identified as preventive measures and curative measures. Preventive measures include risk assessment, risk measurement and risk pricing, early warning system to pick early signals of future defaults and better credit portfolio diversification. The curative measures, on the other hand, aim at minimizing post-sanction loan losses through such steps as securitization, derivative trading, risk sharing, legal enforcement etc. It is widely believed that an ounce of prevention is worth a pound of cure. Therefore, the focus of the study is on preventive measures in tune with the norms prescribed by New Basel Capital Accord.The study also intends to throw some light on the two most significant developments impacting the fundamentals of credit risk management practices of banking industry – New Basel Capital Accord and Risk Based Supervision. Apart from highlighting the salient features of credit risk management prescriptions under New Basel Accord, attempts are made to codify the response of Indian banking professionals to various proposals under the accord. Similarly, RBI proposed Risk Based Supervision (RBS) is examined to capture its direction and implementation problems。

商业银行信用卡风险管理外文文献翻译最新译文This article discusses the importance of credit risk management for commercial banks。

Credit risk is a major concern for banks as it can lead to XXX methods used by banks to manage credit risk。

including credit scoring。

credit limits。

and loanXXX to credit risk management。

The article XXX of credit risk to ensure the long-term XXXCredit risk management is a XXX to manage credit risk XXX。

it is essential for banks to adopt us methods to manage credit risk。

These methods include credit scoring。

credit limits。

and loanXXX are used to limit the amount of credit XXXXXX credit risk management。

The credit risk management department should work XXX departments。

such as lending and complianceXXX。

XXX that they are aware of the latest developments in credit risk management。

XXX of credit risk are critical for the long-term XXX that they are effective and up-to-date。

文献出处：Nicely E. The research of commercial bank credit risk management [J]. Research in International Business and Finance, 2015, 8(2): 17-26.原文The research of commercial bank credit risk managementNicely EAbstractCommercial bank credit card business risk management broad sense refers to the commercial bank credit card business, because of various unfavorable factors caused by the issuers, cardholders, specially engaged the possibility of loss. Credit risk refers to the pure credit for credit CARDS are unsecured loans, and credit is not high, the customer more than individual, as well as small amount of single feature, lead to the possibility of loss of card issuers. Through to the commercial Banks to do a good job of credit card risk management put forward the Suggestions and comments, and pay attention to the risks of commercial Banks to establish perfect management system, system, business process research, and put forward the commercial Banks in establishing a system of credit card business management structure, regulations, at the same time, want to notice to each kind of risk identification, measurement, assessment and do a good job in risk loss provisions in personnel management, should pay attention to establish risk rewards and punishment mechanism, pay attention to the positive incentives to the employees.Keywords: Credit CARDS; Risk management; Incentive mechanism1 IntroductionCredit card refers to the bank issued to individuals and units, with the function such as shopping, consumption and access cash bank card. Its striking feature is that the Banks granted to customer a certain line of credit, customers can enjoy the privilege of the reimbursement after be being card first, its form is a positive with the issuing bank name, the period of validity, card number, card, the cardholder's name, article with a magnetic stripe, signature on the back of the information such as bank CARDS. We now call the credit card, generally refers to borrow write down card. Credit risk refers to the bank credit card holders for various reasons failed to fullyrepay bank debt and cause the possibility of default, defaults, bank will because the cardholder does not thereby causing loss to the bank funds paid promptly. Credit card main risk including fraud risk, credit risk, operational risk, accredit card risk management refers to in the process of credit card business, the possible including fraud risk, credit risk, operational risk, etc, all kinds of risk management and control is to reduce the possibility of loss The loss rate of operation and management activities.2 Literature reviewThe concept of risk management since the 30 s of 20th century, after nearly 40 years of development to form a system, gradually by people began to attach importance to and cognition, form a new management discipline. The concept of risk mainly comes from the insurance industry, insurance for risk defined as the uncertainty of loss. In 1964, the United States of the risk management and insurance, it has made the definition: risk book points out that through the risk identification, assessment, and control to achieve with minimum cost to make a management method of minimizing the risk loss. In 1976, eight Gerry, in his book, the risk management of international enterprise, points out that protection of enterprise's financial stability, reduce the loss caused by risk events is the main goal of the enterprise risk management. In 1975, risk management and insurance management society, scholars from all over the world including general principles, risk management was determined by the talk of risk identification and measurement, risk control and other criteria. The establishment of these guidelines, marks all over the world, risk management theory with the preliminary development, management framework has been set up. Also marks the risk management has entered a new stage. In July 2004, Basel 2 rules on commercial Banks, puts forward a new risk management requirements, he fully considered for the bank including market risk, liquidity risk, credit risk and operational risk, a variety of provide for risk identification, risk measurement standard, make risk management work more accurate quantitative measurement. In 2004, the COSO committee issued "enterprise risk management integrated framework", put forward by the enterprise internal control into risk control as the main direction of management thinking. Puts forward the concept of comprehensive risk management,including internal environment, goal setting, time identification, risk evaluation, risk countermeasure, control activities, information and communication and so on eight aspects. American engineer bill fair and Earl joint research and development of the FICO credit score model, since the most card issuers have also been used this model. This model gives the credit scoring system out of a possible 900 points, according to the situation of the borrower's credit history and compare the data with other borrowers, given the borrower credit situation trend in the future.3 Credit card risk3.1 Credit card cash outCredit card cash out to merchants with the bad cardholders or other third party in collusion, or merchants themselves by credit card as the carrier, through the fictitious transactions, asking price, cash return, show the credit card credit behavior, including but not limited to: merchants and cardholders conspired to use point-of-sale terminals (POS), with fictitious transactions, falsely making out the price, cash returns to the behavior of the cardholders to pay cash directly; Or merchants to help paid the cardholder account overdraft, after using the POS machine will advances in fictitious trading way back to their accounts, and collect fees to the cardholder a card such as behavior; Or online merchants cardholders conspired to fictional price, false transactions, such as buying from selling the way, show the credit card for trafficking in fraudulent credit card Internet consumption credit, etc.3.2 False card stolen brushFalse card stolen brush refers to criminals use false card on the POS terminal for credit card transactions to steal bank funds, belong to the important type of fraud. Criminals often by merchants, independent bank terminals, as well as a variety of convenient payment terminal channels, using dedicated track record the equipment needed for the bank card information side track information through various channels, such as the Internet or buy others have steal bank card track information, password access usually by peeping in the cardholder spending places the cardholder password or independent in ATM equipment installed video cameras record customer password, even through ATM keyboard paste, such as false record customer password keyboard,or using client code, easy to guess the cardholder password and other means to obtain the cardholder password.3.3 Online payment fraudOnline payment fraud refers to the fraud part swindled through Internet channels and the cardholder's bank. On-line payment fraud mainly by non-financial institutions or commercial Banks provide online payment channel for fraud. Current fraud activists by phishing site, bank card fraud or Trojan virus, characterized by use of phishing site or Trojan virus to steal the cardholder's bank card number, password and verification code information, phishing cardholders to online trading, to defraud money. Or commercial bank online banking channel for bank card fraud, fraud part using bank online banking vulnerabilities, and the weak link in the online banking fraud.3.4 Operating riskPrevention and control of credit card operation risk, first, to find a good risk points, find out in the hairpin and post-loan risk prone link in the entire process, find out the risk points, and then control the risk. Credit card's life cycle is divided into application stage, audit stage, hairpin used to send phase, activation and post-loan management, such as card renewal phase. First by the applicant voluntarily to the commercial bank to apply for or commercial bank marketing personnel to promote credit card products to the applicant, the applicant according to the guidance of sales people to fill out credit card application form after the above requirements to fill out information, to submit proof of identity is required by the application, work proves that the domicile certificate materials, such as bank marketing personnel will be the applicant's application form submitted to the bank's examination and approval department, by a bank according to the customer qualification examination and approval department for credit card mail after examination and approval to the customer. Customers call the bank customer service special line opened activate the card, the card can normal use, generally the validity of the credit card for 3 ~ 5 years according to the process of the life cycle of credit card sorting operation risk points exist in the whole cycle.4 Conclusions and recommendationsFalse card stolen brush loss brings to the commercial Banks, cardholders Carrie's money is missing, tend to give the feeling of cardholders' money in the bank is not safe, affect the reputation of the bank, bring bank reputation risk. In the process of pursuing for unauthorized, if not solve in time, often commercial Banks must bear a lot of damage. Due to false card stolen brush is not tight to bank losses, and seriously affected the reputation of the bank. So focus on guard against the risk of false card stolen brush is the key of the bank fraud risk control. Commercial bank credit card business is strengthening risk prevention. To do the following: to strengthen the education of the cardholder and prevent unauthorized knowledge propaganda, tip card holders do not use the card to the others, pay attention to protect the password in the daily charge without being stolen. Strengthen the bank back transaction monitoring, summarizes the characteristics of the pseudo card stolen brush, such as the combination of false card stolen brush is easy to occur before time, business category, unauthorized ongoing balance inquiry, around zero, fraud part of bank daily trading limit restrictions for unauthorized transaction monitoring rules set by the characteristics. When the transaction behavior, identity card and cardholders are found not to conform or high transaction should contact the cardholder to confirm authenticity, to confirm that the cardholder to authorize the transaction after I deal correct. Effectively raise Banks to prevent false card stolen brush ability of risk prevention and control. Magnetic stripe card renewal work done as soon as possible because the bank magnetic stripe card refers to magnetic materials for storage medium, such as bank account information recorded in the magnetic stripe CARDS, magnetic stripe card is easy to be copied to the bank money loss, therefore at present a lot of Banks have begun to bank card renewal work, with good safety performance of financial IC card instead of bank magnetic stripe card. In addition, improve the incentive mechanism construction of risk management, on the basis of regular and irregular in the risk assessment results, good for the risk assessment results, comprehensive risk management framework construction perfect mechanism, through the authorization for adjustment, performance ratings, priority support to start newbusiness delegation, adjustment factors of business innovation, management, can be appropriately in the human resources and cost allocation give policy tilt, can give points in performance appraisal review. For risk management body have made outstanding contributions or reduce loss of major risk events offer certain material and spiritual reward employees, and on the personal career advancement channels give sufficient consideration; For all kinds of risk management talents, external training, qualification certification, access to exchange offer certain aspects such as policy tilt, and on the personal career advancement channels will be given full consideration. For all kinds of risk management talents, external training, qualification certification, access to exchange offer certain aspects such as policy tilt, and on the personal career advancement channels will be given full consideration.译文商业银行信用卡风险管理研究Nicely E摘要商业银行信用卡业务风险管理广义上讲是指在商业银行信用卡业务经营中，因各种不利因素而导致的发卡机构、持卡人、特约商户等损失的可能性。

商业银行信贷风险管理外文文献翻译中文3000多字This article discusses the importance of credit risk management for commercial banks。

It highlights the us methods used by banks to manage credit risk。

including credit scoring。

credit limits。

loan loss ns。

and collateral requirements。

The article also examines the impact of regulatory requirements on credit risk management practices and the role of corporate governance in ensuring effective risk management。

Overall。

the article emphasizes the need for banks to adopt a comprehensive and proactive approach to credit risk management in order to maintain financial stability and avoid costly losses.In today's increasingly complex financial environment。

effective credit risk management is essential for the long-term success of commercial banks。

Banks face numerous challenges in managing credit risk。

商业银行风险管理中英文对照外文翻译文献(文档含英文原文和中文翻译)“RISK MANAGEMENT IN COMMERCIAL BANKS”(A CASE STUDY OF PUBLIC AND PRIVATE SECTOR BANKS) - ABSTRACT ONLY1. PREAMBLE:1.1 Risk Management:The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. Credit risk is the oldest and biggest risk that bank, by virtue of its very nature of business, inherits. This has however, acquired a greater significance in the recent past for various reasons. Foremost among them is the wind of economic liberalization that is blowing across the globe. India is no exception to this swing towards market driven economy. Competition from within and outside the country has intensified. This has resulted in multiplicity of risks both in number and volume resulting in volatile markets. A precursor to successful management of credit risk is a clear understanding about risks involved in lending, quantifications of risks within each item of the portfolio and reaching a conclusion as to the likely composite credit risk profile of a bank.The corner stone of credit risk management is the establishment of a framework that defines corporate priorities, loan approval process, credit risk rating system, risk-adjusted pricing system, loan-review mechanism and comprehensive reporting system.1.2 Significance of the study:The fundamental business of lending has brought trouble to individual banks and entire banking system. It is, therefore, imperative that the banks are adequate systems for credit assessment of individual projects and evaluating risk associated therewith as well as the industry as a whole. Generally, Banks in India evaluate a proposal through the traditional tools of project financing, computing maximum permissible limits, assessing management capabilities and prescribing a ceiling for an industry exposure. As banks move in to a new high powered world of financial operations and trading, with new risks, the need is felt for more sophisticated and versatile instruments for risk assessment, monitoring and controlling risk exposures. It is, therefore, time that banks managements equip themselves fully to grapple with the demands of creating tools and systems capable of assessing, monitoring and controlling risk exposures in a more scientific manner.Credit Risk, that is, default by the borrower to repay lent money, remains the most important risk to manage till date. The predominance of credit risk is even reflected in the composition of economic capital, which banks are required to keep a side for protection against various risks. According to one estimate, Credit Risk takes about 70% and 30%remaining is shared between the other two primary risks, namely Market risk (change in the market price and operational risk i.e., failure of internal controls, etc.). Quality borrowers (Tier-I borrowers) were able to access the capital market directly without going through the debt route. Hence, the credit route is now more open to lesser mortals (Tier-II borrowers).With margin levels going down, banks are unable to absorb the level of loan losses. There has been very little effort to develop a method where risks could be identified and measured. Most of the banks have developed internal rating systems for their borrowers, but there hasbeen very little study to compare such ratings with the final asset classification and also to fine-tune the rating system. Also risks peculiar to each industry are not identified and evaluated openly. Data collection is regular driven. Data on industry-wise, region-wise lending, industry-wise rehabilitated loan, can provide an insight into the future course to be adopted.Better and effective strategic credit risk management process is a better way to Manage portfolio credit risk. The process provides a framework to ensure consistency between strategy and implementation that reduces potential volatility in earnings and maximize shareholders wealth. Beyond and over riding the specifics of risk modeling issues, the challenge is moving towards improved credit risk management lies in addressing banks’readiness and openness to accept change to a more transparent system, to rapidly metamorphosing markets, to more effective and efficient ways of operating and to meet market requirements and increased answerability to stake holders.There is a need for Strategic approach to Credit Risk Management (CRM) in Indian Commercial Banks, particularly in view of;(1) Higher NPAs level in comparison with global benchmark(2) RBI’ s stipulation about dividend distribution by the banks(3) Revised NPAs level and CAR norms(4) New Basel Capital Accord (Basel –II) revolutionAccording to the study conducted by ICRA Limited, the gross NPAs as a proportion of total advances for Indian Banks was 9.40 percent for financial year 2003 and 10.60 percent for financial year 20021. The value of the gross NPAs as ratio for financial year 2003 for the global benchmark banks was as low as 2.26 percent. Net NPAs as a proportion of net advances of Indian banks was 4.33 percent for financial year 2003 and 5.39 percent for financial year 2002. As against this, the value of net NPAs ratio for financial year 2003 for the global benchmark banks was 0.37 percent. Further, it was found that, the total advances of the banking sector to the commercial and agricultural sectors stood at Rs.8,00,000 crore. Of this, Rs.75,000 crore, or 9.40 percent of the total advances is bad and doubtful debt. The size of the NPAs portfolio in the Indian banking industry is close to Rs.1,00,000 crore which is around 6 percent of India’ s GDP2.The RBI has recently announced that the banks should not pay dividends at more than 33.33 percent of their net profit. It has further provided that the banks having NPA levels less than 3 percent and having Capital Adequacy Reserve Ratio (CARR) of more than 11 percent for the last two years will only be eligible to declare dividends without the permission from RBI3. This step is for strengthening the balance sheet of all the banks in the country. The banks should provide sufficient provisions from their profits so as to bring down the net NPAs level to 3 percent of their advances.NPAs are the primary indicators of credit risk. Capital Adequacy Ratio (CAR) is another measure of credit risk. CAR is supposed to act as a buffer against credit loss, which isset at 9 percent under the RBI stipulation4. With a view to moving towards International best practices and to ensure greater transparency, it has been decided to adopt the ’ 90 days’ ‘ over due’ norm for identification of NPAs from the year ending March 31, 2004.The New Basel Capital Accord is scheduled to be implemented by the end of 2006. All the banking supervisors may have to join the Accord. Even the domestic banks in addition to internationally active banks may have to conform to the Accord principles in the coming decades. The RBI as the regulator of the Indian banking industry has shown keen interest in strengthening the system, and the individual banks have responded in good measure in orienting themselves towards global best practices.1.3 Credit Risk Management(CRM) dynamics:The world over, credit risk has proved to be the most critical of all risks faced by a banking institution. A study of bank failures in New England found that, of the 62 banks in existence before 1984, which failed from 1989 to 1992, in 58 cases it was observed that loans and advances were not being repaid in time 5 . This signifies the role of credit risk management and therefore it forms the basis of present research analysis.Researchers and risk management practitioners have constantly tried to improve on current techniques and in recent years, enormous strides have been made in the art and science of credit risk measurement and management6. Much of the progress in this field has resulted form the limitations of traditional approaches to credit risk management and with the current Bank for International Settlement’ (BIS) regulatory model. Even in banks which regularly fine-tune credit policies and streamline credit processes, it is a real challenge for credit risk managers to correctly identify pockets of risk concentration, quantify extent of risk carried, identify opportunities for diversification and balance the risk-return trade-off in their credit portfolio.The two distinct dimensions of credit risk management can readily be identified as preventive measures and curative measures. Preventive measures include risk assessment, risk measurement and risk pricing, early warning system to pick early signals of future defaults and better credit portfolio diversification. The curative measures, on the other hand, aim at minimizing post-sanction loan losses through such steps as securitization, derivative trading, risk sharing, legal enforcement etc. It is widely believed that an ounce of prevention is worth a pound of cure. Therefore, the focus of the study is on preventive measures in tune with the norms prescribed by New Basel Capital Accord.The study also intends to throw some light on the two most significant developments impacting the fundamentals of credit risk management practices of banking industry – New Basel Capital Accord and Risk Based Supervision. Apart from highlighting the salient features of credit risk management prescriptions under New Basel Accord, attempts are made to codify the response of Indian banking professionals to various proposals under the accord. Similarly, RBI proposed Risk Based Supervision (RBS) is examined to capture its direction and implementation problems。

信贷全流程风险管理英语Credit Risk Management throughout the Entire Loan Lifecycle.Credit risk management is a crucial aspect of any financial institution's operations, as it involves identifying, assessing, monitoring, and controlling the potential losses resulting from borrowers' default on their loan obligations. This process extends throughout theentire loan lifecycle, from the initial stages of credit origination to the final stages of loan repayment or write-off. Effective credit risk management not only ensures the financial stability of the institution but also enhancesits ability to offer competitive loan products and services to its customers.1. Credit Origination.The credit origination stage involves theidentification and evaluation of potential borrowers, theassessment of their creditworthiness, and the decision to extend credit. At this stage, credit risk management focuses on the following:Credit Policy and Strategy: Establishing clear credit policies and strategies that align with the institution's risk tolerance and strategic objectives.Borrower Evaluation: Conducting thorough credit appraisals to assess borrowers' financial condition, repayment history, and other relevant factors that impact their creditworthiness.Credit Scoring and Underwriting: Using credit scoring models and underwriting criteria to objectively evaluate borrowers and determine the terms and conditions of the loan.Documentation: Ensuring that all loan documents are complete, accurate, and legally enforceable.2. Credit Monitoring and Surveillance.Once a loan is disbursed, credit risk management shifts to monitoring and surveillance. This involves:Regular Reviews: Conducting periodic reviews of borrowers' financial performance and compliance with loan covenants.Early Warning Signs: Identifying and responding to early warning signs of potential default, such as missed payments or deteriorating financial conditions.Portfolio Analysis: Analyzing the credit portfolio to identify concentrations, trends, and other potential risks.Stress Testing: Assessing the resilience of the loan portfolio to adverse economic scenarios to identify vulnerabilities and prepare contingency plans.3. Credit Risk Mitigation.To mitigate credit risk, financial institutions mayemploy a variety of strategies, including:Diversification: Spreading credit risk acrossdifferent borrowers, industries, and geographies to reduce the impact of any single default.Collateral and Guarantees: Requiring collateral or guarantees from borrowers to secure the loan and ensure repayment in case of default.Pricing: Charging appropriate interest rates and fees to compensate for the risk associated with the loan.Reserve Provisioning: Setting aside provisions to cover expected losses from loans that may default.4. Credit Recovery.In the event of a default, credit risk management focuses on recovering the outstanding loan amount. This may involve:Collections: Initiating collections processes to recover the outstanding loan amount through various means, such as phone calls, letters, or legal action.Loan Restructuring: Negotiating with borrowers to modify the terms of the loan, such as extending the repayment period or reducing the interest rate, tofacilitate repayment.Write-offs: In some cases, loans may be written off as unrecoverable losses, after which the institution may pursue legal remedies or sell the defaulted loan to a third party.5. Credit Risk Reporting and Analytics.Finally, credit risk management involves reporting and analytics, which involves:Reporting: Producing regular reports on credit risk metrics, such as default rates, loss ratios, and provisions coverage ratios, to inform management decisions.Analytics: Utilizing advanced analytics tools and techniques to identify patterns, trends, and correlations in credit risk data to improve risk management strategies.In conclusion, credit risk management is a continuous and comprehensive process that spans the entire loan lifecycle. It requires a combination of sound policies, rigorous underwriting criteria, proactive monitoring, and effective recovery strategies to mitigate credit risk and protect the financial institution's assets. By prioritizing credit risk management, financial institutions can enhance their operational efficiency, profitability, and overall competitiveness in the marketplace.。