Research Of Credit Risk Guantify Management Of Banking System

From now to a far future, in China, loaning from bank will still be the major way of financing for most of the companies, and credit risk of banking systems will still be the major finance risk. The minimal capital requirement that make bank safe is calculated base on risk exposure. Basel II provide two solution to quantify credit risk: The Standardized Approach, The IRB Approach. In future, the commercial banks in China will finally need to meet the capital requirement of Basel II. Under the globalization of finance, in order to improve their competence, the commercial banks in China have to keep pace with international standard, develop internal credit risk rating systems that practically applicable to specific bank.Under present condition of Chinese banking system, referring to international ready-made model is a practical way to build its own credit risk management system. Credit risk model is the core of credit risk management system. Three international best know credit risk models were listed in this paper. They are Credit Metrics, KMV, Credit Risk+. A comparison of these models especially with...