Study On Credit Risk Assessment Of Commercial Bank

With the development of economic globalization, the economy is gradually opening up and diversification, economic situation is also influenced by international finance.Currently, commercial banks as part of a market economy, many transactions are in effect acting as a trading intermediary, to ensure the normal operation of the economy, promote the rapid development of the economy. Since the credit business generated as a commercial bank’s main business, which is the main source of income for banks. However, high yield means high risk, credit risk has cropped up, which is a significant challenge for the development of the commercial bank credit risk management.Therefore, under the current economic situation, commercial banks in order to obtain long-term stable development in a rapidly changing financial environment, both with the continuous expansion of business to seek greater market potential, develop a wider range of customer base population, obtain a relatively stable at lower risk situations proceeds constantly open market,so commercial banks must focus on the main business:integrated management of credit operations, credit risk assessment as one of the core content for future commercial banks to improve the quality of work. In addition, Commercial banks, especially take credit assessment of SMEs as a new direction of development, because the continuing development of SMEs and their sustained economic growth played a role in the buffer zone,has become a factor in the stability and the potential to promote economic development, which is the commercial bank can obtain long-term stable development of the areas on which the new credit. But, the unique operating characteristics of SMEs born (capital strength is weak, the rules and regulations are not perfect, weak regulation, government support is not),and commercial banks in China is still lagging behind management concepts processes, does not exist in many norms and other issues, especially in the business management aspects of admissibility and SME loans often carry out specialized treatment, which makes this even more difficult to control credit risk, these factors are bound to make commercial banks SME credit business management must be an important areas of development, in order to obtain significant revenue from SMEs, to take the initiative role in the future development. Therefore, the establishment of a sound credit risk management system for SMEs is good to do risk management, improve accuracy as far as possible, to create a favorable environment for SME lending, borrowing, which for the sustainable development of the commercial banks is of great significance, but also conducive to the sustainable development of the whole financial environment.First, based on the research background, significance, elaborated on the research literature, introduced the definition and classification of credit risk aspects. In particular, information economics, game theory, the status of the two levels of analysis and study of SMEs in China, because naturally there is a serious problem of information asymmetry between banks and enterprises, resulting in the acceptance and management of small and medium banks credit business, faced with the problem of "adverse selection" and "moral hazard" and a series of SME lending, but these problems are caused by the credit rationing problem, it is difficult to increase the lending to SMEs, bank funds are not able to make effective and rational allocation.and finally briefly bank credit market environment management problems caused.Again, identify research tools and research methods. According to the development of commercial bank credit risk management, respectively, detailing the traditional credit risk management and modern risk management practices and models, and compared their advantages and disadvantages, and the reality of our country to be considered and found that the most appropriate measure of status quo KMV model is the model;Finally, use KMV model to measure credit risk of small plates listed companies, which is the biggest innovation of this article. On the domestic research, the research on credit risk management metrics of SMEs is little, most of them stay in the perspective of qualitative analysis, even for those SMEs listed as well. Therefore, this article tries to expand the applicability of KMV model to study KMV model through greater applicability to SME credit risk assessment more accurate measurement. This paper compares methods were elected to normal stock, ST stock for each ten, the results of the model calculation can reveal the real credit status of listed companies in a way, has strong credibility.The results shows that, KMV model has strong applicability, especially for our listed companies, with a strong measure of value, can be a good support for the commercial banks in the evaluation of business risk. It is also a major expansion of the applicability of the KMV model, extends to the field of small and medium enterprises, to manage the credit risk of SMEs to provide ideas.But it also shows that, for those SMEs do not have listed, because these companies all aspects of the system is not perfect, supervision is weak and does not have a strong applicability. So, you need to use a certain KMV model amendment that requires the help of a certain amount of qualitative analysis, and not simply rely on KMV quantitative analysis, qualitative analysis and quantitative analysis, timely and appropriate use. In this paper, special emphasis is here working the loan prior to the visits. factory visits, although as a part of the loan before the review, but it is the commercial banks from their own perspective to assess the status of an important part of business, only to make full visits in order to avoid borrowing to maximize the information asymmetry problem, which is the key to do qualitative analysis. In summary, for different companies and different conditions, depending on the needs analysis, selecting quantitative analysis and qualitative analysis to establish a comprehensive analysis model.Finally, this study illustrates the lack of that in the analysis process, because some indicators can not get, so use alternative indicators to analysis, which will definitely have an impact on long-term measurement accuracy, and therefore in the domestic market, KMV and other quantitative further promote the model, does not yet have a good market environment, requires the joint efforts of quantitative analysis model to pave the way in the development of our country.