Credit Rating Of Commercial Bank Based On The Financial Analysis

On the bank credit rating, famous international credit rating organizations, such as Moody, S&P, all establish a set of valuations system of their own. although its fair isoften asked by the public, its authority and influence does not allow to query. At the same time, IMF, BIS and other financial supervision authorities of many countries have used the method of credit rating to strengthen financial supervision .Compare with it, our country bank credit rating work starts later, further more, there are many difference between the western countries and our country in respect of credit rating industry. For instance, the different operation and management characteristics of commercial bank, the difference in accounting system, not perfect in our law system and social reputation and so on. All these have affected the credit rating consciousness of our investors, credit rating institutions and credit rating objects in different degree. At the same time, all these have affected the authority and social approve degree of the credit rating result. As a result, our bank credit rating industry develops comparative slowly. This condition does not go well with the incoming vigorous financial competition. After China acceded into WTO, The People's Bank of China starts introducing the system of credit rating to the cautious supervision over commercial banks. This article will combine the relative content of economics of information, use Shannon's formula about information quantity, in order to put up a new method of credit rating and apply broader idea to perfect credit rating of China commercial bank.