A Law And Economic Approach To The Establishment Of The Internal Rating System In China

As one of the most important risks in commercial banking activities, credit risk has been the hot topic of bank managers and regulators. "The New Basel Capital Accord" put forward an innovative measurement and control method in the credit risk of commercial banks, which is IRB. This article will focus on the business of loan in the commercial bank credit, from the legal and economical angle, based on the analysis of China's commercial banks credit risk and regulatory status, in combination with the experience of the establishment and application of internal rating system in other states, to focus on the analysis of IRS's economical impact and external institutional requirements. Finally, this article will make suggestions about the internal technical means and the external institutional constructions in establishing the internal rating system in China.