Credit Risks Assessment And Management Of The Commercial Banks Of China

Credit risk is the main operational risk of the commercial banks and it is important to accurately recognize and assess it, then to avoid it. Based on the planar rating system of the New Basel Accord, my paper discusses the client rating and the loan rating respectively. Firstly, it compares the assessment and management in commercial banks between China and America, then lists the differences and gap. Secondly, it describes the high credit risks in China and brings forward the concept of "invalid assessment", and then expands the research to the institutional level. At last, my paper put forward the suggestions according to the New Basel Accord to improve the situation.A few creative points lies at the concept of "invalid assessment", "reliability" and "validity".