The credit risks of commercial banks are expressed in the following forms:

1. The types of credit risks can be generally divided into two categories: non-market risks and market risks.

Non-market risks mainly refer to natural and social risks. Natural risk refers to the risk that the borrower will suffer economic losses due to natural factors and is unable to repay the principal and interest of the credit; social risk refers to the risk caused by the behavior of individuals or groups in society;?

Market risks mainly come from The production and sales risks of the enterprise (borrower) (that is, the risks caused by changes in market conditions, production technology and other factors during the production and sales process of the borrower's goods.

2. Credit risks of commercial banks The prevention is mainly the prevention of bad credit.

3. Causes of commercial bank credit risks and preventive measures:

The credit management system of state-owned commercial banks is a strange circle in my country's commercial bank credit management. Structural reform seems to have formed such a vicious circle: delegating power and profits → insider control → huge increase in non-performing loans → strengthening supervision → credit tightening → generating new non-performing assets, that is, the Chinese government is in a dilemma during the process of reforming the credit management system of commercial banks. : We are both worried that excessive regulation will cause a credit crunch, and we are also worried that excessive decentralization of power will lead to a loss of control over insiders. So, what is one of the reasons why the reform of my country's credit management system cannot adapt to the objective requirements of market economic development? It is the virtual ownership of state-owned commercial banks. Modern enterprise theory requires owners and creditors to supervise and restrict operators, while the ownership of state-owned banks is exercised by representatives of the central government and local governments, and the bank's creditors are mainly depositors. residents, the management rights rest with the bank manager.