Study And Application Of Credit Scoring Models To Chinese Commercial Bank

As one of the main risks in financial market, the measurement and management of credit risk is the essential problem facing all the commercial banks. The improvement of credit risk management ability has become more important for China's banks. Compared with developed countries, the exterior circumstance, interior controlling system, data system, technique and methods have many defaults and deficiencies.According to analysis and study on credit evaluation methods and techniques and the practical circumstances of commercial banks in China, this paper indicates the deficiency of the method of classifying credit in China's commercial banks at present : the quantitative method is not scientific, The index selection is absurdity, etc. Aiming at resolving these problems, this paper constructs a credit evaluation model, hoping to raise the credit risk management level of our country's commercial banks.For the credit evaluation approach proposed by this paper, firstly, we use the principal component analysis to sieve the index for the credit evaluation, set up the index system objectively. later on, use the DEA to evaluate the selected index synthetically, giving a comprehensive evaluation score, namely"credit score". We can judge the credit risk degree of bank's customers according to this"credit score". lastly , apply listed companies data carries on the empirical research, proving the possibility of that method.This paper synthesize financial indicator analysis,statistic analysis and efficiency analysis, building up the quantitative relationship of company's credit risk degree and financial indicators. Empirical results show that the credit evaluation approach proposed are feasible.