Abstract: The Credit Risk Mitigation Instrument was promoted by the Association of Inter-bank Market Dealers in China at the end of 2010, which opened the era of credit derivative instruments of banking risk management. In recent years, in order to reduce banking credit risks and vitalize credit fund stock, credit risk transfer instrument was again mentioned by the regulatory authorities, which further enhanced the importance and urgency of the study of the credit risk mitigation instruments and the banking risk-taking behaviors. On the basis of the existing researches, taking bank’s risk-taking behaviors in China as research object, this paper conducts a selective analysis of the influence of credit risk mitigation instrument on bank’s risk-taking behaviors. The conclusion of the study indicates that the credit risk mitigation instrument can improve the bank’s risk-taking capacity. But taking into account the external economic influencing factors, its role is not significant. This shows that China’s credit risk mitigation instrument is only a supplementary means to banking risk management, and its risk transfer function remains to be further excavated.

Key words: credit risk transfer; credit risk mitigation; risk-taking