A Study On Credit Risk Management Basing On The Economical Capital Method

The credit risk is the main risk of the commercial bank, especially in china. In our country, because the developmental course is ephemeral, directly lead to the idea, the means and the method of the commercial bank management behindhand. In order to improve the method of the credit risk management, raise the level of the credit risk management, the commercial bank of china introduce the overseas advanced risk management method is necessary and possible. Credit risk management basing on the economical capital method is one of them. Using the economical capital, namely uses in the capital which makes up the non- anticipated loss to need, the appraisal and the control to the credit risk not only may cater to the shareholder, exterior-management, risk manager, the fund superintendent's demand well, moreover can solve the service development and the risk management match question well in our country. According to our country's present situation, the KMV management pattern is fit for the commercial bank. Because our country capital market is extremely imperfect, so, is very difficult to obtain the company public and accurate material. Adopt DD to count expectation breaking a contract rate is impossible, therefore counts expectation breaking a contract rate by the credit rank and using the KMV management pattern to carry on the risk management is the commercial bank's best choice in our country. Finally, based on the economical capital credit risk management methods to design our country commercial bank's credit risk management flow, proposed the credit risk management flow renovation. The paper mainly has five parts of compositions: First part narrate credit risk...