A Study On Assessment Methods For Credit Risk In Stated-Owned Commercial Banks

Credit risk evaluation methods are hot topics in financial research field. Under the framework of information economics and taking econometrics as research tool, this paper deeply investigates the factors causing credit risk in domestic banks. This paper builds up the credit risk evaluation system, risk rank grading model and risk rank transformation model. By quantitative analysis for credit risk ranking, we construct quantitative framework for domestic bank to evaluate the credit risk they face on the base of rapid changes in banks management and joint-stock reforming. We also give the actuation preconditions and basic guarantee for the framework. This paper provides the technical exploration and preparation to set the internal credit risk evaluation system for domestic banks, which meets their demand of credit characteristics. The main analysis and conclusions are as follows:This paper analyses the risk of credit management process in domestic banks, and finds that the increment of credit loss lies in incomplete information exposure. Which shows as incomplete information on borrower, little sharing on credit evaluation system, low rate of usage of information and credit risk transferring from society credit to banks. The construction of platform for credit risk evaluation is the base of keeping away credit risk.This paper further states that incomplete social credit environment, unenlightened management idea and credit culture, and rigescent internal control mechanism are main barriers to build new capital accord in domestic banks. The key points to solve above problems are how to combine with the management experience and quantitative model, how to self-researching out or import the model, how to control the model and its parameters, and how to match the internal credit grading programming.By the analysis of credit characteristics in state-own banks, this paper finds that different types companies such as state-own corporations, joint-stock enterprises, individual-own companies and joint venture corporations have different management fields and blocks are high in industries. Shortening the lending period is banks' solutions to above problems. More and more well-prospect middle-size and small-size companies gain banks'favor in credit lending, while state-own enterprises get few credit because of their unclear...