The Development Of Credit Risk Assessment And The Commercial Bank Of Our Country Study On The Problem Of Credit Risk Assessment

The credit risk is the possibility of suffering losses or making no profit on the operation of loan fund, which15the result of all kinds of uncertain factors deviating the actual profit of the business entity(the.borrower)from her budget. Among all the risks confronted by our commercial bank, credit risk is the most striking, Problem-centralized and spiny one. Credit risk measurement is the most fundamental as well as premier work to control the risks of credit. It will influence its consequent works directly and play a key role as to how the m commercial banks will survive and develop.After following-up investigation and comparison, we found the trend that the credit risk comparison between the domestic evaluation methods and the foreign ones that the methods of foreign credit risk analysis have changed from financial ratio grading to multi-variable and dynamic analysis based on capital market theory and computer information science. The material progress of its techniques has been achieved in1990’s, mainly manifested in the introduction and Practices of the dynamical model of credit risk measurement such as the Creditmetrics and the Creditrisk+model. However, nowadays almost all banks in China evaluate credit risks by the methods of risk degree computation which lack quantitative analysis. In addition, the banks in China ignore the credit risk of out-table asset and the evaluation of concentrative risk, and cannot apply the integration skills of multi-technology to analyze credit risks.First, the paper reviews the theories of credit risk evaluation and analyzes the reasons resulting in the risk in our commercial banks. Second, the paper introduces the practiced methods and programs of credit risk evaluation in the bank industry of developed countries. Third, the paper analyzes the current situation of credit risk evaluation in our commercial banks and points out the problems existed. At last, based on the previous analysis and the reality, the paper gives the advices and methods to enhance the current credit risk evaluation system.