Research On Credit Risk Measurement And Management Of Commercial Banks In China Based On KMV Model

Credit risk is an important challenge for commercial banks, the credit risk measurement and management of commercial banks is the most important, and it can enrich the theoretical system of commercial banks’ risk management. It is an important way to reduce the risk of non-performing loans and to improve management efficiency. Because the Bank of China in the process of the credit risk management, quantitative analysis method has not been dominant, and therefore based on the KMV model of China’s commercial banks credit risk measurement, the use of quantitative analysis method is particularly important.This paper analyzes the current situation of credit risk management of China’s commercial banks from many aspects, such as the overall situation of the economy, the construction of the social credit system, the application of large data, the third party intermediaries. At the same time, this paper introduces the traditional and modern credit risk measurement methods, and through the comparative analysis of the methods of the current more popular concentration of modern credit risk measurement methods were compared, the choice of KMV model for empirical analysis of the reasons. Once again, based on the development of China’s credit risk measurement technology, combined with China’s national conditions, put forward the credit risk management and measurement of some countermeasures.In general, the credit risk measurement technology based on KMV model is effective in China, but the applicability of KMV model in China is still to be improved. The empirical results of KMV model can not predict the occurrence of future credit events, but its overall estimate is effective, it can provide a reference basis for commercial banks to carry out risk monitoring, it can provide a more comprehensive consideration for the commercial banks. In the process of credit risk measurement, the commercial banks in our country have to analyze the industry and the individual, and then analyze the credit risk by some qualitative analysis method.