The Research On Economic Capital Management Of Credit Risk Of China's Commercial Banks

On the regulatory framework of The new Basel Capital Accord, Capital management is becoming one of the core content of today's international banking's operation and management. As an advanced management methods, Economic capital management realized the integration of capital and risk scientifically, and to a certain extent,has become the the groundwork and a spindle of the risk management of the international banks.Presently, China's commercial banks is wholy still in the initial stage of risk control, and do not form a scientific and effective risk management system. Consequently, Learning and using the advanced management philosophy of foreign banks, and gradually establishing the risk management system that core subject is economic capital is the natural choice in our China's commercial banks development. The greatest risk of China's bank is credit risk,which seriously threated to the survival and development of our commercial banks, and the safe of the entire financial system.So,How to carry out the management of credit risk economic capital effectively, has become a very important job of China's commercial bank ,which has a very strong research significance.This article gives a general theory analysis to the management of credit risk economic capital, introducing the methods of credit risk economic capital management of advanced international banks, simulating the measurement and distribution and performance evaluation of the credit risk economic capital. In addition, this article in order to target a branch of the China Construction Bank, using a case discussions in-depthly the management of China's commercial banks' credit risk economic capital. By contrast, we find out the inadequate of the management of China's commercial banks' credit risk economic capital. Finally,this article gives some strategies to improve the level of credit risk management. We believe that our commercial banks should strengthen the economic capital management concept. At the some time, ready the accumulation of data and model design actively, accomplish the transition from the "factor" to the "IRB" .In the long run, add the the economic capital to the loan pricing and establish and improve the value management system in which RAROC and EVA is the core indicators.