The Study On Credit Risk Transfer Strategy Of Commercial Bank

The Credit Risk Transfer of commercial bank is a bran-new research field, which is worthy of being analyzed in a theoretical framework, for it can offer the innovative idea of financial products, it's the key for banks to shift their roles from principal to agent. There lies two kinds of comprehension about Risk Transfer Strategy, static strategy and dynamic strategy: The static strategy means the risk product itself, mainly includes compensatory product, insurance product, security product and hedge product; The dynamic strategy means the flow of Risk Transfer, mainly includes the process of risk identification, product designing, risk pricing and risk distribution. Pricing technology is the core tache of Risk Transfer flow, and the elite of Risk Management. The technology of pricing the insurance strategy of credit portfolio is universal, it's the pricing foundation of other products. The particularity of credit asset determines that there is not any mature model to pricing the insurance strategy, the only way is to change the existing methods. CreditMetrics model gave some reference to solve the problem, we can make some improvement to the model, with the help of Monte Carlo Simulation, resonable fee will be available.To implement the strategy of Credit Risk Transfer, we should conquer those difficulties, such as how to adapt the correlative system to Basel Accord, bank management mode and market function environment. As to fit the development trend of risk management, commercial banks should redesign their function. On the other hand, Credit Risk Transfer can give us some reverse theoretical thought, for example, it may breed Moral Hazard, it can also augment the deposited risk of the society, what's more, it will conflict with the monetary policy of the country.