On The New Basel Capital Accord Irb Credit Risk Management In Commercial Banks In China

The Basel committee on banking supervision has released The New Basel Capital( thethird manuscript) in April 2003. This accord regards "minimum capitalrequirement ,supervisory review process, market discipline" as its props, provides aseries of scheme of dealing with credit risk ,market risk and operation risk, displayssufficiently the newest achievements about risk management and the newest change ofsupervision practice and have the appropriate foresight. As the common criterion, rule andthe means of risk management of international banking, its implementation will certainly beable to give rise to the far –reaching effects on the international banking. The credit rating isthe beginning of the measurement and is bound tightly with the credit risk measurement .Thecredit rating can be divided into two general parts, one is the external rating from the publicinstitutions, the other is the internal rating based approach. The New Basel Capital Accord ,which implemented in 2006,is the guide to this task. China has entered the WTO and The New Accord will discipline our banking sooner orlater .It is extremely urgent to strengthen and improve the risk management level of ourcommercial banks .Based on this ,this thesis begins with The New Accord ,firstly introducedthe background of The New Accord, and then pointed out that it is very meaningful torecognize and define The New Accord correctly, The kernel of this accord is the IRB.Referring to the practice and experience of other countries' bank's internal rating basedapproach, this thesis gives a brief introduction of the commonly used measurement methodof credit risk adopted by overseas bank .It is very important for domestic banks to establishtheir internal rating system.