Som Neural Network Theory-based Commercial Bank Credit Customers For Evaluation

Commercial bank is a special enterprise which provides services for money clearing and exchange. From 300 years ago when the modern commercial bank emerged to nowadays, credit business is always the main business of the bank. Any business certainly has risk, of course, including credit business. Credit risk is the uncertainty of credit profit or loss. It comes from two aspects, one is the internal management risk, the other is the risk from outside, which is caused by the change of customer condition. Avoiding credit risk, especially the risk from customer, is one of the most important aspects of bank operation. In order to avoid customer risk, there should be some tools to recognize it. Building a customer evaluation system is a proper way. Customer evaluation is the base and key point for credit business.Credit customer evaluation contains a series of work. Today, commercial banks use Credit Rating to evaluate customer. Credit rating has been developing quickly since 20th century. There are lots of relevant organizations all over the world. However, it emerged late in China, and started from late 1980s. After 1997, some standard evaluation organizations appeared, at the same time, the four-big state-owned commercial banks began to improve their credit rating methods.In China, there are still some problems in credit rating. First of all, the evaluation methods have some flaws. Secondly, there aren't any large databases to record the company's financial data. Thirdly, the lack of relevant laws in risk management restricts the use of risk analysis. Solving the last two problems demands the support of relevant laws and policies, as a result, it won't be discussed in this paper. The theme of this paper is on the first problem, namely, evaluation methods.Actually, credit rating can be seen as a classification and sorting...