Credit Research Of Competitive Bank Based On A Simple Credit Model

Finance is the core of modern economy. The healthy development of the financial industry is important to the entire national economy good performance. Banking currency as a going enterprise, it has its own built-in high-risk sexual characteristics. With the global financial integration and the acceleration of the process of China's banking sector fully open, and the increasingly fierce competition in the banking sector. The credit risks what China's commercial banks are facing continue to grow. As a result of commercial banks credit property security relations the bank of life and death, therefore the current banking industry's competition mainly is the credit competition. Unifies this kind of situation, this article studies the credit of the competitive bank.This article has used a simple credit model, by some economic problems quantitative indicators to analyze the relationship between them ; Through extracts the economical cyclical quantification marginal value, using this marginal value the economical situation classification, analyzes in the different economic environment after this the bank gain certain signal, bank loan offer probability. And this article offers an explanation for the economic cycle of inter-bank credit standards changes and price competition, analysis of different economic situation for the bank loan policies. In a period of economic prosperity, the average borrower default risk dropped; in a recession period, the average borrower default risks. After Market-oriented interest rates, commercial banks will enter the competition a new level; banks are facing new credit risk, loan default risk change. As China's market economy improving, the security of the country's financial institutions, especially with regard to credit as banks triggered a series of problems; the establishment of a deposit insurance system is the general trend. This paper not only for the future of banking competition may lead to the credit aspects of the interpretation of a provision, but it also gives an appropriate solution to China situation, and I hope that it will be helpful to the future bank competition.