Strategy For Business Credit Risk Assessment At XX Bank Of Shenzhen

With competition increasingly intense, innovation in financial field coming up on daily basis, banking business becoming more and more complex and diversified, credit risk staying at a dangerously high level, it is paramount for the domestic banking industry to learn the sophisticated credit risk management from our international competitors,to tighten credit risk management, and to develop appropriate credit risk management models,so that it can improve its credit risk management. The Bussel New Capital Agreement (draft), with its first ever proposed IRB, further improved the content and the means of financial risk monitoring, providing a new way of thinking as well as challenge for the reform and development of credit risk management in China. This research focuses on the credit risk rating mephodolegy of the XX Bank of Shenzhen, and, through interviews and anaylysis, intends to expose the difficiency of the mephodolegy, namely the lack of indexing function and objectivity. Because of the lack of researches and documents on the functions of the banking credit risk rating mephodolegy, this research, by drawing on the concepts of IRB of the Bussel New Capital Agreement, proposes approaches to reform China's current business credit risk rating system: stressing the effects of system on the rating of the business credit, a more detailed re-defining of business credit rating, replacing the current approach of adding qualititive analysis to quantitive analysis with qualitive evaluation deciding quantitive ones, and expanding the fucntions of rating index by tying a business' credit rating with its rate of default. The author also believes that...