The Quantificational Research Of Credit Risk Management In China

Credit risk is one of the main risks in financial market. How to improve the managerial level of credit risk is an important question for study in the development of banking industry after China's entry into WTO. However, the quantitative study of it is a bottleneck of the commercial banks of our country. Compared with western countries, the commercial banks of China lack the supporting system of data, qualified personnel and skills which belong to the quantitative management of credit risk. The paper discusses the credit risk management system in detail, comments the existing international model of it, and makes a feasibility research of using the model in China. Considering the status quo of our country, the paper has done a tentative research on credit risk management of banking industry.The research results of the credit risk management of commercial banks of China shows: (1) the existing database used to measure credit risk is very limited, and our banking industry should set up intra-rating system and the database for quantificational management. (2) The paper discusses foreign influential credit risk measurement system and analyzes the feasibility of using the model in China. At present, the KMV model and the CreditMetrics model have some significance to be used in China. (3) Through the analysis of using the KMV model in the listed companies in our country, the result can be useful to the quantitative study of financial institution. To financial institutions of our country, the market price of stocks and shares has long been neglected in the process of loan making strategy. Therefore, we should monitor and control the comments of stock market on the companies. (4) The commercial banks of China should set up credit risk rating system and loan making classification system while making reform in the process of loan making management. (5) Through the research of the methods and practice on the quantificational management of credit risk of the international banking industry, our country can make use of the methods of western credit risk management VAR based on the status quo of our commercial banks, and make innovations according to the situation of our country. (6) The process of using western models of quantificational management of credit risk is only a transitional period, state-owned commercial banks will definitely use their own data model to measure and manage themselves.