Research About Credit Risk Measurement Of Branch A Of Bank B

Commercial bank is the indispensable organization in China's financial system and occupies a pivotal position in the stable and rapid development of the national economy.It can be found from the commercial bank's assets and income structure that its main assets are loans and the main source of income is interest difference between the deposit and loan,so commercial bank risk mainly focused on the credit risk.At present,there is a big gap between our country commercial bank in credit risk management and foreignlarge commercial banks,mainly reflects in the lack of suitable credit risk measurement model and advanced technology tools.The academic circles and the commercial bank are committing to improve our country's commercial bank credit risk measurement level,and effectively reduce the bank credit losses.Therefore,this paper aims to fully learn from foreign advanced technology and credit risk measurement models,and analyse the status and problems of branch A of bank B in-depth.And then this paper carefully considers the necessity and feasibility of the introduction of credit risk measurement models,and does empirical analysis and gives some suggestions as well.A predecessor of branch A of bank B was founded in 1913,called Fengtian semicolon,and divided formally from the People's Bank in 1981,and its main business is personal banking,corporate banking and financial markets.Since 2008,the total assets of branch A of bank B continues to expand.At the end of June 2014,the total assets of branch A of bank B run up to 88.9 billion yuan,with an increase of 11.24%.Among them,the size of credit assets are increasing year after year,and until the end of June 2014,the credit assets of branch A of bank B achieve 51 billion yuan,with an increase of 10.58%,accounting for 57.37%of total bank assets.This shows that the main assets of branch A of bank B is credit assets.But at present,branch A of bank B pay no attention to the credit risk measurement and lack measurement tools and advanced technology.Therefore,this paper aims to fully learn from foreign advanced technology and models of credit risk measurement,and give in-depth analysis of the credit risk of banks A branch metric B status and problems,in order to introduce the appropriate credit risk measurement models to enhance credit risk management level and core competitiveness in branch A of Bank B.This paper firstly summarized the current research situation of commercial bank credit risk measurement and credit risk measurement models commonly used by the foreign commercial bank.Taking branch A of bank B as research object,there exist a lot of problems in credit risk measurement,such as weak credit risk consciousness,credit risk quantification tools backward,inbance in static analysis and dynamic analysis,lack of the basic data,imperfect IT credit system,lack of high-quality professional management team and so on.Secondly,combined with the enlightenment of foreign commercial bank credit risk measurement model and a series of new challenges of credit risk management in domestic commercial banks,there is the necessity and feasibility of introducing credit risk measurement model.In addition,this paper put forward the selection principle and process of the introduction of creditrisk measurement model,and constructed Logit model for the natural person and corporate credit risk measurement.The model prediction is ideal and it can provide good judgment for bank.Besides,it is easy to understand and own strong maneuverability,worthy of promoting in branch A of bank B.Finally,since there is higher maturity of the applicability of Logit regression model,CreditRisk+ model,KMV model and CreditMetrics model,this paper respectively made recommendations for the introduction and made certain recommendations for credit risk management system of B branch of bank A too.