A Study On The Credit Risk Management Of Commercial Banks In China With KMV Model

From the banking sector in its early days, the credit risk is the most importantcommercial banks are faced with the financial risks.Interest income is one of the totalincome than80%of the china banks.Banks and their negative assets and domestic andinternational banks and financial institutions there, the bank must increase the creditrisk management standards, this is an important issue facing the banking sector. Theinternational level, new Basel concordat, has been implemented and financialderivative products trade has developed rapidly, The credit risk management isundergoing a shift, and many representative of the credit risk management measuremodel Commercial banks in the level of credit risk management, comparatively weakis the use of credit risk management models in quantitative analysis.This paper mainly from quantitative analytical research on the china commercialbanks credit risks.Choosing2010, china has been completed by the securities marketsegmentation of the reform of pitchers and67home with any of the family than skindeep67as the samples.According to2010.this category two sample of companiesannual financial data and stock daily transaction data.the use of KMV models thanskin deep and hunger is the company’s commercial bank of credit risk ofdifferent.comparing the two such companies on the size of the bank about the risksThe results indicate using KMV model to measure company’s distance measurementout distance to be less than non to companiesThe biggest advantage about Using KMV model could be based on the stockexchange updates daily data to listed companies and adjust the distance, the presentfinancial system, commercial bank monitors a listed company’s loan of early warningindicators listed company can use the default is to measure. This chapter describes thepromotion of our commercial bank credit risk management measure of the relevantproposals to our commercial bank management role.