Research On Credit Risky Measurement And Management For Chinese Commercial Banks

Risk management is the core issues of a commercial bank management and sustainable development, while the credit risk is one of the most important risk of commercial banks. The past 20 years, financial liberalization and globalization is unstoppable, financial innovation is on the road of rapid development, and some advanced models of the credit risk management were established. China's commercial banks, especially state-owned commercial banks are at high risk of long-term running. In recent years, through a variety of ways were disposed for the considerable number of non-performing assets, but take the banking industry's own view, even not solve the new non-performing assets problems from the system and the fundamental mechanism, credit risks are remain high. There is a so large gap between the Chinese and international commercial banks in credit risk management, the metrics are still in their infancy. Thus, the researches of credit risk measurement and management, enhancing Chinese commercial bank's credit risk management, is an important issue for China's commercial banks to resolve.Papers is beginning from the credit risk measurement and management of Chinese and international commercial banks, specifically elaborated on the concept of management theory and characteristics, and state a brief part of credit risk management metrics follow the chronological order. by the current management's analysis of China's commercial bank's credit risk, pointed out the following four major problems are existence:first, the lack of a sound internal credit rating system; second, the rating system is lacking of scientific measurement model; third, the lack of systematic and dynamic analysis; fourth, the lack of impact analysis in environmental factors.In a definition of risk, credit risk drivers and relevance of the volatility of credit event, recovery rate, the model number of ways as a reference standard, introducing the environmental situation for international multi-metric model in China, the selected KMV model and Credit Metrics model as applied to the specific situation of China are the application of empirical research model. The results showed that in the traditional statistical significance level, the selected models are superiority, and they can be the analysis tools for commercial banks to avoid credit risk and to formulate appropriate audit strategies.The final against China's specific national conditions and economic environment, in-depth study of shortcomings of the reasons in commercial bank's credit risk measurement management, and give a specific explanation from the macro and micro aspects. To improve the management system of China's commercial bank, the authors point the views to be a more comprehensive policy proposals from four:build a good credit risk culture, establish and improve the credit risk rating and early warning systems, building credit risk internal control system and external supervision system, improving the internal and external environment of credit risk management.