Credit Risk Measurement Methods And China's Banking Applications

Credit risk measurement is the most fundamental as well as premier work to control the risks of credit. It will influence its consequent works directly and play a key role as to how the monetary organizations will survive and develop.The material progress of its techniques has been achieved in 1990s, mainly manifested in the introduction and practices of the dynamical model of credit risk measurement on the basis of VAR (Value A t Risk) in the world famous monetary organizations with an attempt to establish a universal and effective system of credit language.The new method to measure the credit risk applicable to some western countries and some initiative proposals to set up the models of credit risk measurement in the banks in China will be discussed in details through three parts in this paper.