Study Of Commercial Bank Credit Risk Management Models

The credit risk is main risk for the financial organization, especially for the bank.Strengthening the management of the credit risk is always the financial industry andits supervising organization work key point. At present, our commercial banks' highernon-performing loans(NPL) have become a big hidden danger for our economichealthy development. The institutional factor of economic transition is an importantreason of forming a NPL loans, but at the same time, the lower level of our banks' riskmanagement, and especially not finding a perfected credit measurement technologyhave accelerated the forming of NPL.Now our banks' measurement is still at primary stage of traditional credit rating.The western developed country banks have already formed very advancedinner models for credit risk measurement. These models take advantage of allinformation to analyse the credit states of enterprises. Using these models, thebanks have improved risk managerial ability. With unlocking greatly of ourfinancial transaction, the foreign banks will gradually get the right for competing withthe domestic bank on an equal basis, and present low risk management level ofdomestic bank will make their out of unfavorable competitive position. Thepurpose of the research in my dissertation is to find out suitable credit riskmeasurement model for our country at present, and improve the credit riskmanagement level of our banks through the reference of this model.