Applied Studies On IRB In Credit Risk Management Of Hunan Branch Of The Agricultural Bank Of China

Credit risk is the main risk faced by commercial banks. The Asian financial crisis in1997and the subprime mortgage crisis in2008make the banking industry a profound understanding of that, the credit risks of banking reform and development, and seriously affect the operation of macroeconomic health, if the management Even the poor will lead to a serious financial crisis and social crisis. Compared to the larger international banks, the credit risk management of China’s banking industry remaining lager gaps, mainly in the accuracy of measurement of credit risk. So the credit risk measurement and therefore domestic commercial banks has been the focus of the study, which is the key to measure of the level of modern commercial bank risk management. IRB derived from the New Basel Capital Accord, is to learn from the experience of advanced modeling and management of major international banks and credit rating agencies, proposed a comprehensive set of viable banks’ risk management methods and frameworks.In this paper, Hunan Agricultural Bank credit risk management for the study, collected the Hunan branch in credit risk management process for customers to carry out internal ratings of cases, operational processes, management practices and other related information as well as specific, combing Hunan Agricultural Bank of China to carry out an internal rating model development and all aspects of system construction, analyzing and conditions apply Hunan Agricultural Bank IRB. Through case studies demonstrate the application of IRB status of Hunan Agricultural Bank credit risk management process, carried out by in-depth data analysis to find the root cause behind the problem, Hunan Agricultural Bank of China put forward to carry out the rationalization of the use of countermeasures IRB credit risk management, optimization measures and proposals to make useful to explore the Hunan Agricultural Bank credit risk management.This paper is organized as follows: In the first chapter, the background and the significance of this research are presented, basic theory and research status are reviewed. In the second chapter, we analyzes the status of the organizational structure, the institutional system and the support system of Hunan Agricultural Bank credit risk management. Hunan Agricultural Bank credit risk management problems exist in expert judgment, quantitative management backward technology, inadequate risk control and other issues in advance of risk management. Further more, we explain the necessity of the application of Hunan Agricultural Bank IRB. In the third chapter, we analyze the foundation and conditions for application of Hunan Agricultural Bank IRB, mainly on the development and applicability of Hunan Agricultural internal rating model, the internal rating system in information systems, institutional support and human resources in three areas of construction, and through IRB application for a customer rating, classification of specific cases, showing the main process Hunan Agricultural Bank credit risk management. In the last chapter, analyzes the status of Hunan Agricultural Bank of the IRB application, evaluate the effect, and find the problems, then raised Hunan Agricultural Bank of China specific measures IRB applications.