Analysis of the Failure of Hierarchy Function of Branch in Loan Management System of China's Commercial Bank and Its Countermeasures

DOI

10.2991/jahp-18.2018.131How to use a DOI?

Keywords

branch; loan management; principal-agent; risk

Abstract

In January 2018, the case of a branch's illegal credit granting broke out, which is expected to cause huge losses of nearly 10 billion yuan. This paper studies the reasons why this case breaks out? This paper starts with the loan management system of the "head office—branch—sub-branch" of China's commercial banks, uses the principal-agent theory to analyze the reasons why the branches fail to control the risks, and proposes countermeasures in a targeted manner.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Liguo He
PY  - 2018/08
DA  - 2018/08
TI  - Analysis of the Failure of Hierarchy Function of Branch in Loan Management System of China's Commercial Bank and Its Countermeasures
BT  - Proceedings of the 3rd International Conference on Judicial, Administrative and Humanitarian Problems of State Structures and Economic Subjects (JAHP 2018)
PB  - Atlantis Press
SP  - 633
EP  - 637
SN  - 2352-5398
UR  - https://doi.org/10.2991/jahp-18.2018.131
DO  - 10.2991/jahp-18.2018.131
ID  - He2018/08
ER  -