On The Commercial Bank Rating Analysis Based On CAMELS Rating

Bank credit rating has been created a century ago in the West.Except for assessing risk and reward, optimizing investment structure and avoiding the role of investment risk to depositors and investors,it also serve to improve the efficiency of financial supervision and safeguard financial security.it payed much attention on credit rating for commercial and industrial films but ignored banks own credit ratings. In recent years, small and medium commercial banks (regional banks, city banks, rural banks) raised in large numbers with different credit and asset quality.In this context, to promote the bank's credit rating is not only the necessity but also urgent. However, the bank credit rating industry in China is still at an infancy stage which have many issues to study. At present, China lacks a bank credit rating applicable to the facts of the sound system, mainly first, rating agencies failed to implement a strict qualification accreditation, and second, the current rating is less than scientific. Bank credit ratings to the healthy development of these two aspects need to reform. Only by addressing these two issues in order to protect the bank's credit rating and orderly norms, improve the credit rating of the technical standards and credibility.In addition, our country`s large credit rating companies by international credit rating company acquired or shares in recent years. If the international credit rating companies operating in China's credit rating industry, will be a serious threat to our country's financial sovereignty, loss of national control over financial assets. Development and Improvement of local credit rating system is a better response, and these include a rating system on banking credit improvement and development.The paper based on the framework of the credit ratings theory, drawing on domestic and international academic point of view integrated using qualitative analysis, quantitative analysis and case analysis, based on the CAMEL model, join the sovereign risk analysis, structural analysis of the banking system and other quantitative indicators, establish suitable conditions of our country's bank rating system model. And select investment banks to study the various indicators for specific analysis, the results of this paper and the result of domestic and international rating agencies, compared to verify the number of indicators by adding the amendment after the feasibility of the model. Finally, to preserve our security and bank ratings accreditation rating agencies made policy recommendations.