Research On Banking Internal Rating System Based On New Basel Accord

Financial risks appear since the occurrence of financial circles. The two go along with each other for several centuries. Since the seventies of the 20th century, integrating with the globalization of international economy and finance, the scale of international capital flow among various countries is becoming larger with a faster speed. The accumulating speed of financial risks is accelerated. Financial crisis breaks out again and again.The banking plays an extremely important role in the development of national economy as the main part of financial circles. It is the primary task for all supervisory authorities to strengthen the risk supervision and maintain the safety and stability of the system. In order to strengthen the international cooperation of bank supervision, the Group of Ten established the Basel Bank Supervisory Committee at the end of 1974. Since the establishment, the committee made a series of principles and agreements, concerning the risk supervision of international banking. The Agreement of Basel is included among them which is far-reaching to the international banking since its publishing in 1988.This text begins from reviewing the historical changes of the Agreement of Basel. It introduces the main content of the New Capital Agreement of Basel and appraisal of each side. Then, it analyses the possible influence to our country and proposes the counter-measure to meet the new agreement. Focusing on credit risks, the main risk which domestic banks are facing, the text recommends two kinds of methods to calculate the weighing assets of credit risks in the new agreement. By comparison, it points out that domestic banks should adopt the internal grading. After recommending the internal grading systems of foreign advanced banks, the paper proposes some suggestions to build the internal grading system of domestic banks.The innovation of this paper lies in this: Facing the influence of the new agreement, viewing from macroscopic and microcosmic aspects, it levelly puts forward the counter-measure from overall to concrete. From bank management and comprehensive reform of supervision to the setting-up of internal grading, the paper puts forward its suggestions thiningly and progressively. It hopes to be of certain positive meanings for the development of domestic banking, especially state-owned commercial banks.