Commercial Bank's Credit Risk Evaluate And Control

The earliest written profession or operation of bank in the international wasfrom Hanmolabi code. There were 150 paragraphs referred to the contents of credit,interest, mortagage and guaranty in the code. We can glimpse at that the early bankindustry had began to deal with credit operation from among the code. In the lateMiddle Ages, trade inter countries was increasing, be on speaking terms with it wasthat diversiform financial organization for trade service began to appear. Itincarnated very distinct in of the time trade center of mediterranean sea Italian. Justabout here, brought about the naissance of the first modern bank in theworld---Italian Merchant Bank. Modern bank began to arise with the appearance ofItalian Merchant Bank. From then on, international financial industry experiencedall previous financial crisis with changes of history, great changes took place ininternational trade and economics development, leading international financialcenter transferred from Antwerp, Amsterdam to London, finally to New York.In China, When operation of bank and credit appeared haven not conclusion inthe present yet. According to ancient literature, China occurred simple financialactivities in the late primitive society, and experienced a evolving course fromoriginal mutualism to ex int credit to usury, but these just is deduction of financialhistory scholars, and have not assured evidence or datum can substantiate it. FromChinese history of credit development, the earliest Chinese ancient written creditoperation was from .Present, what financial historians relatively identifywith is estate mortagage loan just had arisen from the middle Xizhou Dynasty, creditloan was very rifeness from Chunqiu and Zhanguo. After Qing Dynasty and HanDynasty, with development of product economy, hock industry of professionaloperation pledge also began to appear. Although Chinese financial operation hasarisen very early, Chinese financial industry also experienced constant accumulationand development in the 2000 -year-old feudalism society, but because of thedurance of feudalism society and frequent changes of political situation, modernbank didn't begin to develop till the late Qing dynasty.In the developmental history of international banks, financial crisis occurredseveral times in the main countries of the world. The factors of inflation, economystagnancy, war and so on resulted in bankruptcy of many banks. After entering the20th century, the periodicity of the development of capitalist economy and theworldwide wars made some great international banks gradually realized theimportance of risk management. Many scholars and bankers began to study and seekthe technologies and means of risk management, especially credit risk. The firstapplication was financial risk analysis means of borrower in the bank industry,through bring to bear financial analysis means to analyze financial situation ofborrower, and realize the important factors of borrower's assets fluid, managementsituation, refund ability and so on that credit risk evaluation. By constantly seek andpractise, financial analysis means gradually improved. But the means neededpersonal subjective judge, more need recur to evaluator's experience in theevaluation course, so its evaluation result was insufficient nicety. For better proceedwith evaluation to credit risk, reduce personal factors of evaluation course, increaseobjectivity of credit risk evaluation, some scholars began to apply mathematicmeans to study quantity analysis model. By many years research, Markwize putforward risk's variance measure---Markwize model in 1952. It was first riskmeasure index with good statistic characteristic, Merton put forward KMV modelused for calculating borrower's default frequency in 1974, J.P.Morgan put forwardCreditMetrics model in 1997, which was used to estimate, in certain term usuallyone year, future distributing of combinatorial value variety component of debt andother credit products. Quantity analysis model constantly appear, making credit riskevaluation means is more improved, more objective, reduce personal subjectivejudgement at a certain extent.Although quantity analysis model constantly improve in the practicalapplication, but due to complexity of economic operation, uncertainty of corporationmanagement, however need recur to personal abundant experience. Associativeapplication of subjective and objective means played an important part in credit riskevaluation of commercial bank, building up the ability of resistance to risk, so badassets frequency gradually declined. At present, international bank industry mostlyadopts means that combined qualitative analysis with quantitative analysis toevaluate borrower's credit risk. Under the impact of economy restructuring and thedevelopment trend of international bank industry, Chinese bank industry introducesome international advanced risk management means to control credit risk, whichhas acquired good effect , relatively bad assets frequency of new increased assetshas declined.According to Chinese practice, the mostly credit risk of Chinese bank industryjust is loan risk. In the field of credit risk control, compared with great internationalbank, greater difference lies in Chinese commercial bank. Borrowing ideas fromexperience of international bank industry, I think that Chinese bank industry shouldget done with the following work if it wants to control credit risk: The first, strictlyperform "three cheek " system, namely do some research before granting loan,examine middle loan grant, audit after loan grant, The second, judge whether or notto grant loan based on risk evaluation rather than make a decision according to...