The Internal Credit Risk Rating System Of Chinese And Americal Commercial Banks: Comparison And Analysis

In pace with China entering WTO and the China Banking Industry entering the international market, as an essential aspect of banking management, the internal control has become more and more important within the increasing keen competition of banking industry. As a major part of internal control, the bank internal credit risk rating system of Chinese commercial banks has not been satisfied to the demands of estimating credit risk accurately and the demands of managing credit risk effectively. It requires prompt reform and improvement. With reference of his own working experience, combining the theory of internal credit risk rating, the writer makes a thorough analysis on the internal risk rating system of both Chinese and American commercial banks, and finds the difference from various aspects, such as the definition of loss and the division of grades. According to the policies and legal environment, which is influenced by the internal rating system, the writer then inquires into the reasons why the said difference exists in Chinese and American commercial banks. Finally, the writer is aimed at the existing problems of the Chinese bank internal credit risk rating system for the purpose of making use of the advanced experience from American banks. In addition, the writer puts forward the way of improving the Chinese bank internal credit risk rating system under the new financial market environment.