Internal Credit Rating Study On National Commercial Bank System

Risk is the core factor of bank operation process. Pay attention to risk is to pay attention to the new Basel protocol generated by international banking. 《the new Basel protocol》 which marked the great risk management cognition transformation will be formally implemented in year 2006.Meantime, the financial market of china will also be completely open to foreign banks in 2006. The china banking industry will gradually step into 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. Currently, the deep study onnational commercial banks' internal credit rating system appears not very enough, and the relevant research localized more on the fields such as credit rating about commercial bank, and analysis about single case. This paper attempts to explore deep and complete construction internal credit rating system on national commercial bank by using theoretical research method and comparison and analysis.This paper is divided into four chapters. The first chapter mainly summarize the theory on the credit rating and the internal credit rating, combing the definition, generation and development, which is given to introduce into the significant status and function of internal credit risk rating on banking industry. The second chapter analyzes the current actuality of national bank internal credit risk rating system, and the chief problems of the present system. The third chapter discourses upon the difference on the internal credit risk rating of national and international commercial banks from various aspects, such as the definition of loss and the division of grades. Based on the problem post and comparison, this paper expounds the internal rating method in ((the new Basel protocol)) , and discussed how to reconstruct national commercial bank internal credit risk rating system and manage it, which is explored in the chapter four.Followed the discussion listed above, this paper reaches the following conclusions: 1. On a basis of field research, this paper has given a comparatively analysis of the national and abroad commercial banks' internal credit rating systems, hold the main problems and differences. 2. By comparatively analysis of the internal rating method in ?the new Basel protocol)) and current national commercial banks' internal credit rating systems, the paper deduced the essential work has to be done on enriching and consummating the current systems. 3. The paper considers besides of perfecting system itself, there are other internal groundwork need to be done. 4. The paper puts forward that during the designing of national commercial banks' internal credit rating systems;relevant external management institutions should also reinforce their work.