S-Space College of Business Administration/Business School (경영대학/대학원) Institute of Management Research (경영연구소) 경영논집 경영논집 vol.42 (2008)
Chinese Financial Market Development and Risk Management in Banks
중국의 금융 시장 발전과 은행의 위험 관리
- Park, Jung Sik; Kim, Byoung Soo
- Issue Date
- 서울대학교 경영대학 경영연구소
- 경영논집, Vol.42 No.1/4, pp. 39-75
- This study is to examine Chinas financial market and its current risk management status and
to aid various financial institutions efforts in strengthening the nations 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
institutions 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.