Study On The Measuring And Controlling Credit Risk Of Commercial Bank

Four nation-owned banks were formed from professional banks. At present, they haven't completely built up modem enterprise administering mechanism and aren't true commercial banks. Because of historical reasons, the government hasn't solved very well the relationship between nation- owned enterprises and commercial banks, and bad account rates of banks are very high. Because of competition getting more and more heated, banks have already got in the few profits. Chinese commercial banks don't possess the compound condition. Commercial banks' revenue almost comes from depositing and loaning profits. So, running banks loan well is very urgent. Nation-owned enterprises' loans are from commercial banks, but at present, nation-owned enterprises run very bad. It results in commercial banks' bad accounts rate getting higher and higher and banks' credit getting more and more concerned. How to measure credit risk to improve commercial banks' credit is very important.There are a few measuring credit risk methods in foreign countries and, at present, measuring market risk methods were used to measure credit risk. However, Chinese banks' leaders don't pay attention to how to measure commercial banks credit risk. Theorists do some researches from financial management and from qualitative analysis. The paper probes into how to measure commercial banks credit risk from quantitative analysis.In the preface, the paper conducts the paper's studying condition and distinguishes related concepts. In the first part, the paper puts forward to improving professional method and the paper uses multi-attribute decision methods of decision analysis theory to solve traditional "5c" methods. In credit marking methods, the paper probes into Z marking model of Altaian and using the model in China. In the second part, the paper uses Black-School option fixing price formula to calculate loans fixing price. In the third part, the paper uses measuring market risk methods to measure credit risk. In the forth part, the paper uses Markowtiz Mean-variance Analysis in Portfolio Choice and Capital Markets and professor Zhang zhongzhen pivoting operation to solve portfolio loans. In the last part, the paper puts forward to two methods-inside controlling and outside supervision to solve the problem how to improve banks credit. The paper considers that commercial banks credit affects all financial enterprises and all the society. It is urgent for all commercial banks to build up credit storehouse. The credit storehouse is the base of measuring the loan. Every commercial bank should try their best to study methods of measuring credit risk to face the competition of foreign banks after entering into WTO.