The Credit Risk Analysis Of New Exploration To Commercial Banks Of China

In China, the credit risk is the main risk in the commercial banks.It is also the crux of the problem currently facing the banking industry. Since2008, the U.S. financial crisis sweeping the global economic system, as the crisis spread, the real economy appeared alert, and dense shadow. As China’s credit management level in a relatively backward state, the credit risk measurement methods is relatively single occurrence, crisis is exacerbated by China’s commercial banks on credit risk management more difficult. This paper uses Credit Risk Measurement Models as a topic, through this study, we tried to learn from at home and abroad to make more systematic theoretical analysis with a view to China’s Commercial Bank Credit Risk Management technology development and application of make some valid exploration work.This paper describes the Basel Capital Accord, the process of creation and the development of experience by analyzing the New Basel Capital Accord for credit risks in the new method proposed by Standards Act, which will be banking on the division of credit assets to industrial and commercial loans, bank loans, sovereign loans, retail loans, project loans, equity loans for six methods. On this basis, the bank’s internal rating models for different characteristics of the assets of a more intensive assessment, prompting risk-weighted capital adequacy. For credit risk assessment provided policy supportThrough in-depth analysis of the subsequent articles of this financial crisis generated as well as the impact on China’s economy, leads to credit risk management on the importance of China’s commercial banks. Subsequently the concept of credit risk from the commercial bank’s credit risk management and credit portfolio of the evolution of the basic theory, elaborated on credit risk measurement models and methods. And further comparative analysis of three kinds of the mainstream of the current world credit portfolio models-KMV model, Credit Metrics model, Credit Risk+model, so as to arrive Credit Metrics model for use in China has the advantages and adaptability.Additionally, this article using the Credit Metrics model the credit risk of our empirical study was carried out calculation and analysis, respectively, of the single loan, two loans and N loans. and the transfer matrix for the imperfections of the model, as well as in the use of the model calculation of cash flow, it’s only consider the one-year defects such as a credit transfer to take improvement measures.Finally this paper in the form of the current financial crisis, using stress testing and Credit Metrics model combination to deal with a small probability of occurrence of the method, credit risk management for effective ways to explore a reference to suggestions.