Industrial Bank Credit Risk Assessment And Credit Risk Management

The credit risk is the main risk which the financial institute faces.Commercial banks in developed countries are mature in credit riskmanagement, and they have formed theoretical and practicalcorresponding systems, in contrast, the bank credit property qualityquestion has become the restriction to further development of IndustrialBank CO., LTD.. Therefore, it is the most important thing to reduce theratio of its bad property. On the other side, the credit risk managementsystem and managing technology of Industrial Bank CO., LTD. have to beimproved continually, which would meet the requirement of fulfilling thecredit risk management. All of these defects are caused by the imperfectsociety credit system, advanced assessment technology and the riskmanagement lag in business development. So Industrial Bank CO., LTD.faces the large credit risk exposition and undertakes much credit loss.Therefore, it is extremely necessary for Industrial Bank CO., LTD. toestablish the reasonable credit risk assessment system, exam credit rankchanging of enterprises and adjust the real-time risk managementstrategy.This article begins with the introduction of the newest researchprogress on credit risk management and the management condition ofinternational active bank. After contrasting the difference between thetheory and practice of Industrial Bank CO., LTD., it points out thenecessary to establish the credit risk assessment system in theory.Then, this article refers to the constructing model analysis. The credit riskassessment model is based on Industrial Bank CO., LTD.'s loan sampledata, which is constructed by using the factor analysis method, thelinearity distinguishing analysis method and the Logistic regressionanalysis method separately. After examination, this article only using thelinear distinction model and the Logistic return model, because the targetpartial correlation rate is relatively high. Comparing with multi-factordistinction, the Logistic distinction accurate rate is higher, but the trend of both models is nearly the same, that is to say the forecasting accuraterate of bad debt loan is low. The reason is the unreasonable division ofthe original sample to the secondary sample. This artic looks forward toproviding some beneficial inspiration for enhancing the credit riskanalyzing and management level of Industrial Bank CO., LTD..On the foundation of credit risk real diagnosis examination,according to the latest theories,technologies and methods on credit riskappraisal level of modem commercial bank, and combining actualcondition of commercial bank in our country, it has constructed thecommercial bank credit risk assessment system and the credit riskmanagement system which fit for Industrial Bank CO., LTD.'s credit riskmanagement characteristics. This article hopes this achievement will behelpful for the Industrial Bank CO., LTD.'s credit risk management.