Historical Trends and Transitions in Credit Risk Management of Chinese Commercial Banks

The paper outlines different trends and transitions in the history of credit risk management of Chinese commercial banks. By critically reviewing different stages of credit management and its historical evolution, it helps in understanding the nature of subjective challenges faced by Chinese commercial banks to manage credit risks. It reviews post reform policies in particularly after 1978 to locate the policy transitions and trajectories of credit risk management of commercial banks in China. It helps to understand the problems and prospects of effective credit management of risks by Chinese commercial banks. It argues that Chinese commercial banks are facing greater challenges in managing risk after the entry of foreign banks to China. Therefore, it is important for the commercial banks in China to develop its own credit management mechanisms within the context of Chinese banking environment.