Analysis Of Commercial Bank Risk Assessment Methods

The risk evaluation techniques of commercial banks have changed from qualitative analysis to VaR model, from evaluation of credit risk to market risk, from the single evaluation to multiple one. Although current risk evaluation system takes effect on the credit risk and market risk, it is too simple. Consequently, on the basis of the former studies, people begin to study a more effective evaluation system.The thesis includes six chapters.Chapter 1 introduces the background and the development of risk evaluation technique. Several risk evaluation models and the future study direction will be explained.Chapter 2 expounds some problems relating to commercial bank's risk evaluation. The definitions and classifications of finance risk are illustrated. The direct method and the indirect method will be introduced simply.Chapter 3 introduces the VaR model and three calculation ways of VaR model. The advantages and future development of VaR model will be pointed out.Chapter 4 analyzes the credit risk, interest rate risk and capital risk facing the commercial bank. The commercial loan, credit risk evaluation model of consumer loan, sensitive GAP model, duration GAP model and capital model are also introduced in the chapter.Chapter 5 studies the building of risk evaluation system in commercial bank. It takes in the advantages of the former studies and set up a concise, integrated, synthesis index system using the gene analysis and evaluation coefficient.Chapter 6 summarizes the future development and the shortage of the risk evaluation of commercial bank.