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Chinese Financial Market Development and Risk Management in Banks

서울대학교 경영대학 경영연구소
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  • Design


 This study is to examine China’s financial market and its current risk management status and to aid various financial institutions’ efforts in strengthening the nation’s credit scoring and asset management disciplines by exploring the potentials of implementing advanced corporate credit risk evaluation systems.  Chinese banks, which constitute over 78% of the total Chinese financial market, are still dependent on deposit-loan margin structures. Thus there are elements that call for improvements in the overall credit risk management operation. Their credit evaluation system including corporate failure prediction, which is axial in the credit rating and post management process, should be designed as a part of a comprehensive evaluation system, taking consideration of each institution’s evaluation purpose, usage and the current management system.  To foster and strengthen its financial industry, China should focus on implementing a modern financial system that shifts from quantitative expansion to qualitative improvements. It is also urgent that the financial system and practices meet global standards for the structuring and modernization of a corporate credit evaluation system that is specific to China.

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