Commercial Banks Based On The Concept Of Economic Capital, Credit Risk Management

Credit risk refers to the loss possibility due to the default of the borrower or businesscounterparts. Nowadays, the different parts of fiancé in our country still operateindependently, combining with the unachieved goal of interest rate marketalizationand the difference between the borrowing and lending rate still being the main sourceof income of commercial banks, all of which lead to the fact that the credit risk is themain risk of our banks. In order to enhance the status in the international competition,it is necessary to get a deeper understanding of the concept and the formulation of thecredit risk, to analyze the computation measures of credit risk capital required byBasel II, and to use the well-developed theory of economic capital of internationalleading banks. At the same time, the banks should make effort in the foundation ofdatabase, the development of credit risk model and speeding up the finance reform tocreate a sound environment for the credit risk management.