Improved Research On The Internal Rating System Of Y City Commercial Bank

With the continuous development of China’s financial markets,increasingly rich financial products,more and more fierce competition among banks,the banks are also facing more and more risks.Especially since the financial crisis,the economic downturn has been a serious problem.The survival and development of enterprises have been affected to varying degrees.The default rate of enterprises has been on the rise.This not only caused a huge loss of bank credit funds,but at the same time,the stability of the bank’s own operations was severely violated.The bank’s credit risk management capability has gradually become one of the important capabilities of a bank to survive and develop.In order to solve the tremendous impact of the comprehensive banking industry in various countries,the Basel Committee revised the Basel New Capital Accord on various risks faced by the banking sector,clearly emphasizing the impact of credit risk on banks and increasing the banks’ All aspects of the bank credit risk,market risk,operational risk,liquidity risk,legal risks and re-assessment.Among them,credit risk is one of the most important risks in the banking industry.The Basel Committee requires banks in all countries to set up an internal rating system so that banks can accurately measure the credit risk that may be suffered.Taking Y City Commercial Bank as an example,this paper analyzes the existing problems by analyzing the current status of its internal rating system.Summarizes the current Y City Commercial Bank’s internal rating system in the following six areas:the internal rating system is outdated,the lack of specific characteristics of the Bank’s credit business,a lack of comparative analysis of the industry,the lack of a forecast of the financial situation of enterprises,the lack of special Adjustment of the situation,the lack of comprehensive professionals and so on.In addition,in view of the above deficiencies in the internal rating system,suggestions for improving the internal rating system of Y City Commercial Bank are put forward,and measures to improve the effectiveness of the internal rating system are put forward.Facing the maturing credit risk management system and internal rating system,as a city-based commercial bank,Bank Y should actively keep pace with the credit risk management of advanced banks at home and abroad.From establishing the Bank’s internal rating system to gradually deepening and constant Improve and perfect the internal rating system,and finally set up an internal rating system based on the internal rating method to continuously enhance risk identification and measurement capabilities.Only in this way can the banking industry with increasingly fierce competition and gradual enhancement of management improve market competitiveness and play an important role in promoting the local economic development.