In recent years, in order to solve the credit risk of banks, China has taken various measures. We not only calculate risk assets and supplementary capital according to the provisions of Basel Accord, but also use traditional credit risk measurement methods. Credit supervisors make credit decisions after analyzing the financial statements and recent settlement records of borrowing enterprises, and adopt more advanced risk-based five-level loan classification to classify and manage the credit assets of banks. However, various management measures have not greatly reduced the credit risk of commercial banks. There are many reasons why the credit risk management effect of commercial banks in China is not obvious, mainly because commercial banks in China, especially state-owned commercial banks, have shortcomings in credit risk management system, organizational system and technology. In terms of risk management system. Before the reform and opening up, China was a planned economy system, with big finance and small banks as the basic pattern of finance, and the banking system was characterized by highly centralized planned management and administrative constraints. After years of reform, the corporate governance structure of state-owned commercial banks has made great progress. However, China's modern commercial banking system has not really been established, and the fundamental problem of modern corporate governance structure needs to be further solved. The defects of corporate governance not only make the credit risk management foundation of China's commercial banks weak, but also seriously restrict the development of state-owned commercial banks. In terms of organizational management system. Although China's commercial banks generally implement the system of separating loan from audit, the customer management department is responsible for issuing loans and the credit risk management department is responsible for reviewing loans, so that the credit risk management department does not directly contact loan customers and avoids loan risks. However, compared with foreign countries, the credit department and loan review department of domestic commercial banks are not independent and are subject to more external interference. The principle of independence is not fully reflected in their work, and the interface and responsibilities between departments and posts are generally unclear. In terms of risk management tools and technologies. At present, various financial derivatives emerge in an endless stream in the international financial market, and financial innovation accounts for an increasing proportion in banking business. With the enhancement of financial risk and market uncertainty, bank risk management has become increasingly complex. Although domestic commercial banks have made some improvements in the innovation of financial products and the application of financial instruments, they are still far from meeting the needs of reality, especially in the use of financial derivatives for credit risk management. According to the above situation, the improvement measures of credit risk management of commercial banks in China should be: (1) system improvement. Only by building China's commercial banks into modern joint-stock commercial banks can we improve the development ability, competitiveness and risk resistance of banks, especially state-owned commercial banks. To become a real joint-stock commercial bank, we must first improve the corporate governance structure, because a sound corporate governance structure is the basis for establishing a modern financial enterprise system. To establish and improve the corporate governance structure, it is urgent to do a good job in two aspects: first, to build a complete and independent risk management system and establish a comprehensive risk management model, which is the key to improve the risk management level of commercial banks; Second, we should improve the internal control mechanism, establish and improve the scientific decision-making system, effective self-restraint and incentive mechanism, and ensure the operation of the corporate governance mechanism. This is the most important and basic line of defense against financial risks, and it is also the basis for improving the management level of commercial banks, reducing the proportion of non-performing loans, increasing profitability and promoting the shareholding system reform of commercial banks. (2) Perfection of organizational system. Domestic commercial banks can consider dividing the loan management process into four important links: customer management department, credit management department, review department and loan review Committee. In the design of each link, the existing functions should be retained as much as possible, and advanced management methods, mechanisms and concepts of western commercial banks should be introduced to enhance the bank's ability to resist risks. (3) Improve the level of risk measurement. Credit risk assessment is a complicated and extremely important work for banks. This work requires that the bank's credit officers have the ability to accurately identify the risks and strengths of borrowers and conduct a unified and accurate credit rating for customers throughout the bank. First, establish and improve the internal rating system. The specific measures can be as follows: establishing an independent internal rating department, which should be independent of decision makers and loan issuing departments in organizational structure and personnel appointment and dismissal to ensure the objectivity of rating results; Establish reasonable internal evaluation procedures, establish risk management standards, information disclosure system, rating identification procedures, etc. , so that banks can first make a correct judgment on the risks they face, and then make a timely assessment on this basis; Establish an internal rating supervision department, set up a supervision department outside the internal rating department, and regularly test the rating results to form a check and balance effect on the internal rating department. Second, with the help of the technical strength of professional rating companies. In the process of credit rating, we can consider using the power of external rating agencies, that is, on the basis of our own internal credit rating system, using the rich data and professional industry analysis of professional evaluation agencies as the overall judgment reference, so as to adjust the bank's credit policy, determine the asset structure more reasonably and increase the accuracy of risk prediction. Third, from qualitative analysis to the combination of quantitative and qualitative analysis. Qualitative analysis mainly focuses on macroeconomic situation, industry and market conditions, enterprise management, organizational form and contingent liabilities. Theorem analysis is mainly aimed at the financial situation of enterprises. Foreign commercial banks have developed many advanced models in risk management and the measurement of credit portfolio (that is, the sum of all bank loans). Domestic commercial banks should learn from the advanced models of foreign banks, start to establish risk management models that meet their actual needs, and make some basic preparations. (4) Using credit derivatives to transfer credit risk. Credit derivatives are a series of financial derivatives that strip and transfer credit risk from basic assets. Its trading time in the international financial market is not long, but its development speed is very rapid. 1993 The credit derivatives transactions that have taken place in the international banking industry provide an important international reference for Chinese commercial banks to carry out this business. Therefore, it can be said that it is not only necessary but also feasible for China commercial banks to use credit derivatives to manage credit risk.