Guangdong Nanyue Bank (GNB) shows the alternative strategies of credit risk management which led to its growth. It was formed out of local government finances and enterprise shares but spread its base to six cities and ranked as one of the top ten banks in the country. Since its establishment, the bank has been adhering to its market positioning: serving small and medium-sized enterprises, serving local citizens and serving trade financing. In order to better regulate the credit approval procedures and improve the credit level of decision-making, GNB has developed a set of applicable measures for the management of credit risk, set up corresponding departments and allocated professional staff for credit risk control before approval of loan, during the loan, and after the loan. The paper looks at the alternative strategies followed by GNB to manage credit risk and grow successfully within the banking industries in China.
Bibliographical noteAll publications are open access in full text and free to download.
- alternative strategies