Optimization Study Of Credit Rating System Within Finance Company H

Enterprise group financial companies have been an important part of financial market as non-bank financial institutions,making significant contributions to the development of enterprise group and financial market since the first one established in China in 1987.With the development of economic globalization,the uncertainty of Chinese market and the risks faced by financial companies has increased gradually.Simultaneously,financial regulatory agencies,such as the China Banking Regulatory Commission and the People's Bank of China,constantly improve the requirements of credit risk management within financial institutions.Financial Company H is one unit of Z Military Industrial Group Co.,LTD with the role of capital settlement center,inner financing center and financial service center.However,the current credit rating system of Financial Company H falls behind relatively because it cannot control risks effectively and cannot service Z Group Co.,LTD well.Therefore,it is necessary to optimize the current credit rating system of Financial Company H to meet the needs of its own development.The better credit rating system should control risks effectively,satisfy enterprises' financial needs,and meet the credit rating system requirements raised by China Banking Regulatory Commission and the People's Bank of China.This article combined with the actual situation of Financial Company H and the development direction of Z Group Co.,LTD,optimizing the current rating system and credit system of Financial Company H from the empirical angle.In the rating system part,author optimizes from both qualitative and quantitative aspects.Logistic regression and subset regression are used to build rating model of enterprises' quantitative credit in the quantitative part.A series of indexes are chosen to analyze credit level of enterprises with the actual situation of Financial Company H and Z Group Co.,LTD qualitatively in the qualitative part.As in the credit system part,author offers optimization advices from credit line and credit cycle aspects.This article classifies customers of Financial Company H by different standards to make sure the optimized credit system could recognize different enterprisesdifferently.In this way,the new credit rating system could achieve the purpose of meeting the demands of all units belongs to Z Military Industrial Group Co.,LTD and controlling risks at the same time.