Research Into The Commercial Bank Credit Risk Identification

Credit operation is an assets operation of primary importance for commercial banks, and the quality of credit assets does not only involve the risk management in commercial banks but also have a bearing on their long-term development. Credit risk identification can not only facilitate ex ante control over credit operation and the formation of reasonable abandonment of high-risk credit operation but can also help to strengthen the control over risk points in the process of specific credit operation, additionally, it can facilitate to promote the credit management work in bank so that a more reasonable credit management system can be worked out.Through making an analysis and research on the advanced foreign methods of credit risk identification, the author hereof has pointed out in this article the insufficiency of the existing administrative methods concerning credit risk control, having established a double-factor identification method from the angle of credit risk identification and control by taking financial statements as primary grounds while integrating the advantages of index supervision and control, financial statement analysis, Delphi and VaR etc., and taking a full consideration of financial risks, and paying a special attention towards thenon-financial factors, such as trade risk, operation risk, management risk and morality risk etc..Improving ex ante identification will facilitate to abate and control risks; Drawing a conclusion of the control quantity of credit offer based on the marks evaluated under the double-factor method, i. e. an overall analysis from the two aspects of financial factor and non-financial factor, may contributed to a more comprehensive pre-credit, in-the-process-of-credit, after credit control over the credit operation for commercial banks. Regarding to credit risk identification and analysis, precautionary measures should be taken and risk points should be grasped, then credit risk can then be better prevented and controlled.When adopting the above various measures to prevent and distinguish credit risks, commercial banks must make an effort to improve and perfect their internal control and management system, which can not only prevent and abate credit risks but also can yield twice the result with half the effort in the process when the specific measures for credit risks control are used.