Evaluation Of Local Commercial Banks Credit Risk Control System

Credit risk internal control evaluation is a key way of managing credit risk. With the gradual promotion of the evaluation method,it has become an integral part of the development strategy in a risk assessment method. Nowadays, the domestic in the bank credit risk in the process of evaluation is usually based on the audit conclusion, but the inadequacies is that it is cannot bring non audit index incorporated. Therefore, with the combination above, this paper strives to construct a model of scientific and reasonable evaluation of bank credit risk,which can be combined with the bank's actual situation of the amendment.Firstly, this paper introduces a series of risk control theory at home and abroad, and explores further the means of many large domestic bank internal risk control. Secondly,based on the theoretical research, with reference to the evaluation index of "internal control evaluation pilot scheme of the commercial banks"of the CBRC, combined with the actual situation of local commercial banks, with reference to the opinion of the authority with rich work experience, this paper builds internal control evaluation index system of credit risk, and determines the weight function of each index by using the analytic hierarchy process. Referring to the mathematical model of Fuzzy Analysis Sethod (FAS), this paper makes empirical analysis of the credit risk internal control system of local commercial banks through the use of fuzzy evaluation. Taking Wuxi Rural Commercial bank as an example to verify the assessment system. The evaluation results from the empirical process have strong direction, many of which are difficult to draw by other evaluation methods. Finally, aiming to the weakness of internal control evaluation of credit risk of local commercial banks, this paper suggests specific measures and proposals to Wuxi Rural Commercial Bank, in order to improve self-restraint mechanism of local commercial bank further, and promote stably.The author found that most information is about the credit risk control mechanism of commercial banks.and there are few professional discussion on how to objectively evaluate the risk of internal control mechanism.At the same time, many local commercial banks in China are often followed by the results of the previous audit to evaluate the current implementation of the risk control system.But the audit is generally limited, only for credit business, the impact of non credit business on the audit is not considered, and therefore it can not be evaluated from the objective point of view of the quality of internal control.On the other hand, in the evaluation of the quality of internal control of credit risk, the focus is on the evaluation process control, do not pay attention to the evaluation of internal control results.Therefore, for local commercial banks, they should build a practical internal control system for their own business management,to ensure that their management level will improve further.Through the combination of theory and practice,we determine the effect of credit risk of internal control mechanism one by one,and on the current risk internal control quality of utility of scientific and reasonable evaluation.Through the evaluation to find the limitations of internal control mechanism, and put forward the reasonable suggestion to be improved, in order to enhance the level of bank credit risk management.This is also the innovation and contribution of this paper.