An Empirical Analysis on the Factors Influencing the Credit Management of Commercial Banks in China

Credit management is of great significance for commercial banks to reduce credit risks and reduce the loss of bad debts. Main factors affecting credit management of commercial banks were extracted and used to establish the bank credit management evaluation system in the process of credit management. The degree of impact of each factor on bank credit management was measured through Principal Component Analysis (PCA) method, and used to provide decision-making basis for emphasizing on these factors to reduce losses. Studies shows that Chinese commercial banks should focus on repayment management of Post-loan management. Then they should pay attention to the access evaluation and repayment ability assessment of pre-loan management. Last but not least, we should pay attention to the authenticity and integrity of the information in the loan.