The Research On Internal Credit Rating Of Commercial Bank In China

Credit risk has been the most important forms of risk faced by commercial banks, the World Bank studies have shown that the global banking crisis led to bank failures mainly due to credit risk, credit risk management is a matter of survival related to the commercial banks. New Basel Capital Accord proposed a new framework for the continuation of the bank regulatory system the core of the1988Basel capital adequacy ratio, credit risk control as the focus of regulatory thinking, but at the same time that the safe operation of the bank can not be achieved only by the capital requirements, stressed that only through the minimum capital requirement, supervision and inspection of the regulatory authorities and market constraints complementary and coordinated with each other in order to make the financial system more efficient and more robust. The IRB core and one of the main innovations of the New Basel Capital Accord, that motivate banks to independent research and risk measurement and management methods, the banks internal estimate of the major risk factors as the main parameters of the calculation of the capital, both to strengthen the bank responsibility for risk management and internal control mechanisms, but also increase the flexibility of the bank’s risk management tools, which will improve the bank’s core competitiveness level, will become the mainstream model of bank risk management and capital regulation.With the further opening up of China’s financial market, China’s commercial banks headed toward the biggest challenges facing the process of international market and credit risk management. China Banking Regulatory Commission announced in2003, the implementation of the New Basel Capital Accord in China’s commercial banks will take a "two-step" and "two-track" strategy. How in practice, constantly in-depth study and implementation of the new Basel Capital Accord, the development of the new agreement are consistent and suited to their own characteristics internal rating system, improve risk measurement instruments to raise the overall risk management capabilities, and enhance the international competitiveness of China’s commercial banks, to promote the stability of the banking system operation and sustainable development, has important practical significance.This paper introduces the basic framework of the internal rating method and its application in measuring credit risk of, between the present situation of credit risk management of commercial banks in China and the current internal rating system and the Basel new capital protocol standards gap, by learning from the advanced experience of the developed countries in Europe and America in the implementation of internal rating method, the suggestions on the construction of internal rating system of commercial banks in China are presented, these suggestions include strengthening the overall credit risk management of commercial banks in China, the accumulation of the internal data, optimize the allocation of weights, to improve the performance of the analysis of cash flow value, actively adjust the rating point, strengthen the five loan risk classification system.