Study On The Application Of Financial Distress Models To Credit Risk Management

Commercial Bank is an industry with high risk. Customer bankrupt caused by financial crisis is the direct reason for credit property losses of commercial bank. How to discover the enterprise financial crisis sign as soon as possible, which enables commercial bank to adjustment it's credit policy in time according to the warning signal so as to avoid the loss of credit property, is becoming focus of concern. Therefore it is of very important significance on theory and reality to bring quantitative analysis into the financial crisis forewarning model for credit risk management of commercial bank. In some foreign countries, the credit risk assessment quantification method bring forth the new by weeding through the old, management technology is becoming perfect. And quantitative technology, support tools and software have been applied to the commerce. This paper reviews related theory of credit risk management, analyzes the characteristics of commercial bank credit risk in China, points out the remaining problems in credit risk management, introduces credit risk quantification model used by some foreign countries commonly. Taking the enterprise financial crisis forewarning theory as the main theory tool, combining the enterprise financial requirement from credit risk management, this paper uses the financial forewarning model to verify the feasibility of the short-term forecast for the financial situation of enterprise by demonstration method, compares and analyzes the linearity distinguished model (DA), the logical return model (LG) and the nerve network model (ANN) .On this foundation, this paper proposes a thought to make credit risk management of commercial bank in China more perfect.