The Development Of The Commercial Bank's Risk Measurement And Its Implications To China

Finance risk management is always one of the key questions in commercial banks management. The way and means of commercial banks management in our country is on the basis of qualitative description instead of quantitative analysis over a long period of time. Most of the academic researches on financial risks are with a view to macro and system aspects. It is in recent several years that the research works began to study in micro aspect, especially at a quantitative angle. On the contrary, the western countries have achieved much progress on financial risk measurements since 1960s. It should be pointed out that the development direction of financial risk management is to use mathematics model to measure and control risks.The main purposes of this thesis are as following: the first, introducing the theory, metric models and technology of modern western risk management based on the micro aspect and supplying references to our financial institutions. The second, considering how to build a risk metric model adapting to Chinese commercial banks. Because credit risk will still be the principal mode in our commercial bank's risk management and high level metric models haven't sufficient conditions to be used in China. I think it should be divided into several stages to build our commercial bank's metric model. The real choice is to use "credit score" to measure commercial bank's credit risk. Next by improving internal and external conditions, high level metric models will be used gradually. Now the most urgent thing we should do, considering the absent of history data of China's companies, is to build the credit rating system of China's companies.At the last of this thesis, I also give some constructive advices about how to measure Chinese commercial bank's market risks and operation risks.