Research On Application Of Commercial Bank In China With Kmv Model

The credit risk refers to the probability of loss resulting from the default of borrowers or market trading counterparts. Our country's financial system pattern takes the banking industry as the main body to dispose fund and to undertake the financial risk. The bank system is the most important part of the financial system to locate function and the guide police in the China's economic reforms and the financial development. However, the credit risks are not only the main risk which our country Commercial bank faces, moreover the credit risks storage quantity is very big. The high proportion's non-performing loan weakened the bank competitive power enormously, and becomes the biggest stubborn illness during the domestic banking industry's development.This dissertation chooses the measurement management of the credit risk of our country's Commercial banks as research project. Through this research, it tries to make a comparatively systematic theoretical analysis and empirical study of the credit risk problems of Commercial banks on the basis of using the domestic and foreign existing research achievements for reference, for the purpose of doing some effective works for the development and application of the credit risk management techniques of our country's Commercial banks.Firstly, this dissertation introduces the concept, characteristic and emerging reason of the credit risk. Secondly, it introduces the meaning and the basic theory of the credit risks' measurement and management, and analyzes the importance and the necessity of the research in basic theory and the application to our country commercial bank. Then it elaborates several kinds of important models and the methods of the credit risks' measurement and management in brief in the 4th chapter, and gives the advantage and disadvantage of each model and the methods. Finally, this dissertation analyzes the feasibility of the KMV model in China. Then, it introduces the KMV model's basic theory and the computational method in Chapter 5. Based on this, it takes some listed companies of our country as the sample, using the KMV model to get and analyzes the distance of default, then explains the serviceability of the KMV model to our country credit risks' quantification management.