The Research Of RAROC Model In Credit Management Of A Bank

Now,the social economy develops fast,the financial industry also broke the original credit model,however,with the continuous progress of financial reform,the credit risk is gradually increasing,the disturbing factors of commercial banks keep increase,it has become a key issue in the financial industry.Because the bank's own nature of the elements of its own capital is relatively low,the commercial bank credit behavior mainly depends on the increase in capital storage quantity,and obtain profits,but credit risk is always in the ascendant trend and needs a scientific risk management techniques to prevent.RAROC model is first proposed in the United States and widely used,in order to adapt to the RAROC model to achieve a clear risk management and other aspects of loan pricing,China's banks continue to explore key elements,default probability and risk measurement are economic capital needs to be continuously optimized,in order to make use of application of the RAROC model,A bank has also made a series of adjustment of the product structure and business structure.This paper takes A bank as an example,lists the practical application of RAROC technology for risk management in the banking industry,Put forward that the application experience of perfecting RAROC model in banking industry in our country needs to accumulate a large number of bank internal customer data and complete supporting system support and so on.This paper,taking Bank A as an example,analyzes the practical application of RAROC risk management technology in banking credit management and puts forward the application experience of perfecting RAROC model in banking industry in our country.We need to accumulate a large number of bank internal customer data and complete supporting system support problem.In the first part,the background of the emergence of RAROC model is explained,the research methods and research ideas are explained,and the related research results at home and abroad are briefly described.The second part introduces the content and definition of the model,and reviews the application of the RAROC model in the current domestic commercial banks.The third part introduces the situation of Bank A and the status and acquisition of the RAROC model in Bank A The fourth part analyzes the existing problems and causes of Bank A in the RAROC model application practice.The fifth part is the perfect method and suggestion,highlighting the ways to improve the application of RAROC model in Bank A credit management.The sixth part is the conclusion,summarizing the full text and looking forward to the next research.