Commercial Bank Credit Risk Measurement And Management

Credit risk is one of the most important risks with which commercial banks have been confronted in our country. It affects not only the management of commercial banks directly, but also the development of economy and the stabilization of society. Compared with that of western countries, domestic current credit risk management is in a relatively low level, and just depends on traditional technique of credit risk analysis. In addition, China has entered WTO, which makes national commercial banks have to face more and more competition. It is crucial for them to raise the level of credit risk management.Based on the research of the modern models of credit risk measurement which are influential at present in West and combined with the situation of our country, this paper make an elementarily investigation on how to strengthen the quantitative management of domestic commercial banks' credit risk. The paper consists of four parts. Part one first expatiates on the basic conception and the economic consequence of credit risk, and expounds the connotation of credit risk management and its up-to-date development. Part two mainly analyzes the traditional technique of credit risk analysis and management. Part three researches on the modern credit risk measurement models that are very popular in western countries, and empirically analyzes some companies' credit conditions by one of these models. Part four elementarily conceives a system about commercial banks' credit risk quantitative management according to domestic practice, and put forward some corresponding proposals.