The Problems And Suggestions Of The Internal Rating System In The Credit Risk Management Of Commercial Banks In China

since the nineteen seventies, the financial liberalization, globalization trend of rapid development, financial innovation emerge in an endless stream, at the same time, the international banking risks facing the increasingly complex and diverse, the financial crisis also appear continuously. From the Southeast Asian financial crisis to the American subprime crisis, every crisis there find by hard and thorough search all without exception and bank risk management the paper leakage has direct or indirect relation. All sorts of risks in the banking industry, the credit risk is the main cause for the quality of bank credit assets decline, liquidity crisis, is also one of the main reasons causing the regional and global financial crisis.Therefore, to strengthen the management of credit risk is related to the commercial banks and the global economy, the key to long-term stable development. Commercial banks in China in terms of adapt to the requirements of the external supervision, reduce the cost of capital, enhance the scale economy point of view, or from the strengthening of internal risk management, enhance profitability, enhance the core competitiveness of point of view, it is necessary to learn from the advanced technology and experience of risk management of the Basel new capital agreement, to further improve the credit risk management mechanism and improve the level of risk management. While the internal rating method as the core technology of the implementation of the Basel protocol, in China’s banking industry is gradually opening to the outside world, the pace of financial market reform further accelerating, how will the popularization and application of the internal rating method generally recognized international banks in the commercial banks of our country, have extremely important theoretical and practical significance to establish suitable for our country commercial bank credit risk internal control system. This paper studies the application of the internal rating method as one of the core contents of the new Basel Capital Accord on credit risk management of commercial banks in China in the hope to, China’s commercial banks will be fully implemented and extended credit risk internal rating method and made the beneficial discussion for the credit risk management process of commercial bank.