Method For Design Of Commercial Banks To Corporate Clients Internal Credit Rating And Empirical Research

Since the economic opening to the world, many theories and methods of risk management of international banks have gone to china, and evaded Chinese banks to accelerate their reform and development. They have made a greater effort and minded much more to risk management, and foreshorten the distance to international advanced banks. But no measuring risk no risk management indeed. From December 10th, 2006, foreign banks will enhance their step into china. Chinese banks must research and practice internal credit risk ratings imminently, reinforce the foundation of credit risk management, in order to promote the ability of risk management and competitive to international advanced banks. In other words, elevating the ability of risk management of domestic banks is the fundamental way to promote the quality of credit assets, and the key of credit risk management is internal risk rating.The paper firstly discusses the theories and models of internal credit risk rating both in and out our country. At the same time, it points out the shortcomings of research of inter-risk-indicating in china. Secondly, the paper discusses the methods of western advanced banks and domestic banks in practical IBR and analyzes the distances of IBR of domestic banks from foreign banks. On the basis of these, the paper designs the object, principle, mood and idea of the internal credit risk rating system and then puts forward industrial scorecards and an logistics PD model in case of the A bank, and constructs the corresponding of them. Finally, using data of nine industrial corporate customers' form A bank the paper evidences these industrial scorecards and the logistics PD model, and analyzes the outcome and verifies the same between the scorecards and the model. At the end of the paper, it proposes policy suggestions to enhance management of internal credit risk rating in native commercial banks based on all these analyses above.