Credit Risk Control Of Industrial Bank Co. Ltd.:With The Credit Risk Rating's Viewing Angle

Due to the decline in economic growth, the companies' capacity of production and management has declined, the solvency has fallen thereupon. Since the end of 2011, the commercial banks' non-performing loans and non-performing loan ratio in China had ended the long downward trend, began to appear the continuous situation of sequential rise. Under such circumstances, the credit risk control is even more important for banks,because the credit assets are the main assets of commercial banks, the credit risk control is the main risk that commercial banks are facing.The main means to control credit risk of commercial banks is credit risk rating for the loan assets, on the full range of information before, during and after the loan examine and approve, internal risk rating and loan risk classification are the important parts of credit risk rating adopted of commercial banks in China currently. Now the main method of loan risk classification is “the five grades judgment system of loan assets” in Chinese commercial banks, although this method can overcome the limitations of “the one overdue two slacks system of loan assets”, there is still a defect in this method which can lead to the accuracy poor of loan risk classification, that the classification is largely based on qualitative standards, and rarely based on quantitative standards. Therefore, with the key point of the five grades judgment system of loan assets, this thesis select the situation of the credit risk rating of Industrial Bank Co. Ltd. as an example, which has rapid developed in recent years, analyzing that the main shortcoming existed in Chinese commercial banks is that the credit risk classification is rarely based on quantitative standards. Combining the knowledge of discounted models of future cash flow in financial management, this thesis makes suggestions that introduce this indicator of the value of creditor's rights to quantify credit risk classification, and gives the specific discounted model of cash flow that using the value of creditor's rights to calculate the value of loan, shows this model's usage by means of an specific example, tries to make loans risk classification can be better served in credit risk control of Chinese commercial banks in the practical application, to enhance the management ability for credit assets of Chinese commercial banks, topromote the quality of Chinese commercial banks' credit assets, eventually to ensure the stable operation and sustainable development of Chinese commercial banks.