Research On The Appraisal System Of Credit Risk Internal Control System Based On Fuzzy Analysis Method In Chinese Banking

Controlling credit risk has always been a hot and focused issue in the process of banking reformation in China.Reviewing on some hot research fields such as endogenous nature of the non-performing loans,soft budget constraints to credits,the frangibility of finance system and so on,the logical conclusions from these researches are always including "Enforcing the credit risk internal control in commercial banks". So,do the internal systems to control credit risk in China banking system work well at the moment? How to appraise their function and improve them?After reviewing the main theories about credit risk management and internal control,introducing the credit situation in China,we made two main conclusions.First, because there are several factors works on the result of credit risk control so,just improving credit system or credit tools won't get great effect.Second,appraising the whole internal control system is beyond the ability of many appraising officers in fact, so it is necessary to appraise the function of those internal control systems which just work on credit risk.Considering of above analyses,this thesis made an effort to explore into the factors impacting internal control system in China banking system at present.The factors that would influence the result of the control system mostly can be divided into five main categories including--Credit environment,Human resources management,Identifying &control tools,Post-supervising and management,Information control.And these factors can be divided into sub-categories described as below----the category of Credit Environment can be divided into:organization & process,credit polices,financial polices to branch-institutions,credit culture/bias;the category of Human Resources Management can be divided into:quantities and qualities of client managers,quantities and qualities of approving work staff,financial policies to human resources,structure of human resources,structure of financial policies;the category of Identify &Control Tools can be divided into:models/instruments for identifying risk,rules & procedure system, operation controlling,computer system,fulfilling upon supervisor & legitimacy requirements;the category of Post-Supervising and Management can be divided into: normal loans management,bad loans management,responsibility and punishment mechanism,audits & supervising,management approval & improvement;the category of Information Management can be divided into information records,information controlling,information exchanging.Above are factors to construct the appraising model.After further discussing about the model,we add The Real Results of Credit Risk Controlling as an amending category,and divide it into Risk degree of all loans and Risk Degree of new loans two sub-categories.After denominating the main categories and sub-categories of the system,we focused on the weights and algorithm.Experts Questionnaire & Fuzzy Calculation being adopted at last.By now,we set up the entire Fuzzy Appraisal System to Appraise Internal Control of Credit Risk in banking systems(for short:FASICOCR system).At last,we use this system finished an experiment to test its feasibility in real economy,and put up some advises for improving credit risk management in China banking system.The main point from this experiment is "The function would be limited if only take measures to change the credit products rules or,only improving the technical approaches such as credit risk methods".Furthermore,we discussed the basic ideas about Dis-cointegrated Relationship and UN-effected System and,made an effort to set up a new solution to improve the credit assets' quality in China.