The New Basel Capital Accord (Basel II) formally put forward itsinnovation on IRB approach to manage credit risks. The keyfoundation of IRB approach is to measure risk parameters, which isbased on the identification and classification of distinctive risks. Inlight of the huge differentiation of regional financial ecology thatresults in different features and levels of credit risks in differentregions, the author suggests set up a region-classified IRB model.Implementing such a model could facilitate capital manoeuvre andmobilization among different regions, impel the enhancement ofsocial credit system and the practice of prudent supervision,therefore will lessen regional discrepancy and improve regionalfinancial ecology equilibrium. |