Theoretical Research On IRA Of City Commercial Banks

As is known, financial system is very important for the economic development and more and more economic crisis derive from the collapse of financial economics. This causal relationship reflects its importance. As one fundamental section, the banking system plays an important role in the steadiness of this system. One basic policy, in order to keep the steadiness, is to secure the credit assets, during which, the New Basel Capital Accord and IRB are important parts.The IRB is such method that assesses the risk by means of customers' credit files. This method has been accepted by most banking systems in the world and plays an important part in the security of banking assets. As one emerging market, our system is still under construction, which leads to many obstacles in the practice of the IRB.As the development of financial reform, the city commercial bank has been an important part, which contributes to the prosperity of local economy. But some special problems make its progress slower than other banks such as the state-owned banks and stock-owned banks, especially for the development of the IRB. But this gap has not been taken seriously and little effort has been given to this problem. So how to construct a suitable IRB according to the specificity of the commercial banks is worth research both theoretically and practically.My paper aims to provide a theoretical framework of the IRB in the city commercial banking system and give some constructive suggestions. The whole paper includes five sections:section one introduces the background, meaning, main method and innovations; section two is literature review which summarize the basic theories, developments and methods; section three is a comparative analysis between the IRB and ERB, which will include the development, the differences and advantages; section four is the introduction of the city commercial banks and the IRB, which may include the development and disadvantages; section five will provide several models and framework in order to choose a suitable theoretical model.