The Research Of Personal Credit Risk Management In Commercial Banks

The first part of this paper introduced the personal credit business ofChinese commercial banks, including the basic introductions, business typesand main characteristics. Secondly, the paper revealed the risk of personalcredit business of commercial banks in china by sort. In all kinds of risks,credit risk and market risk are the most important types of risk. Then, throughthe introduction of the advanced experience of foreign commercial banks onpersonal credit business management, comparing with the domestic status,revealed some existing problems of domestic individual credit riskmanagement.The second part of this paper analyzed the risk of personal credit businessusing the qualitative analysis. In this part, using of personal credit scoringsystem to evaluate the repayment ability of borrowers, credit, collateral andother kinds of parameters of the score management, finally obtains the scoreto judge the borrower’s risk level. The qualitative analysis is the analysis of "quality" of the object of study. Through qualitative analysis, we can use thecomprehensive method for discrimination of a loan risk rating, is high, or low,thus helping the loan manager accurately judge the customer’s risk rating.The third part of the paper is the quantitative analysis. Through the use oflogistic model, combined with some of the existing data, we analyzed the riskof personal credit business using the quantitative analysis method. Afteranalysis, the paper constructively put forward some quantitative analysismethods that are suitable for commercial banks. Quantitative analysismethods are the changes in the number and number of features, to the socialphenomenon analysis. The introduction of quantitative analysis in riskanalysis of personal credit business, is trying to make qualitative analysisconclusions more detailed and accurate. And thus make the risk level moreclearly by using mathematical methods.Finally, the paper put forward some improvement countermeasures atpresent model of personal credit risk management of commercial banks. Inthis part, the author through daily observation, found that some shortcomingsand imperfections existing in the risk management in commercial banks. Byresearching some advanced theories and advanced methods in the analysisand researches abroad, trying to put forward rationalization proposals for thecommercial banks to use for reference. Therefore, commercial banks could lower the risk as far as possible while earning the interest incomes, andultimately achieve the purpose of profit growth.