Study on Commercial Bank Credit Risk Based on Information Asymmetry

Credit risk is the main risk faced by the banking industry, so a lot of work has been done to reduce the losses caused by credit risk. The existing of information asymmetry is the root cause of commercial bank credit risk and is certainly a major cause. Credit risk means the possibility to make banks suffer a lot of losses because of the uncertainties in credit activities. The paper firstly analyzed the commercial bank credit risk based on information asymmetry, and then proposed credit risk management measures.