Research On Application Of Internal Ratings-based Approach In Credit Risk Management In Commercial Banks Of China

With the economic and financial globalization and the development of market economy, a lot of advanced foreign commercial banks come into China, they and the commercial banks in China territory stand on the same level of customer service, the capital and profit, etc, if we want to win in the competition, we could not depend on the advantages of native terrain, more important is how to go out, how to effectively manage risk and reduce loss, and finally make the limited resources into optimization, obtain the maximized profit. The IRB approach is advocated in the new Basel capital accord, it reference the advanced technology of the risk measurement and management with the international banking, puts forward a whole set of perfect internal rating system and minimum standard. China banking regulatory commission encourage the conditional commercial banks accelerate the IRB approach's research and implementation, to improve the commercial bank risk assessment, measurement and management ability.Combined with the qualitative analysis and quantitative analysis and the comprehensive analysis and variance analysis. The first, introduced the commercial bank credit risk and its connotation and characteristics and the IRB approach's basic theory, and analyzes the necessity of the IRB approach's application in the credit risk management of commercial Banks in China; then, analyzed the research and application of IRB approach in domestic commercial banks ; the third, analyzed the international application of the IRB approach in credit risk management in commercial bank; finally, based on combining the reality of commercial Banks in China and learning from foreign advanced experience, give the thought of IRB appraoch in our country commercial bank credit risk management application.