Stress Testing Applied To The SRCB Banking Credit Risk Research

Over past a hundred year, global market has taken great changes, which have great impact on commercial banks. Many well-known banks experienced bankrupted and restructure in the sub-credit crisis of 2008. How to decrease the influence of the crisis is a challenging work. Recently, stressing-test is applied as a method to avoid the influence of the crisis. The stressing-test is not a new concept, and it is being implemented and enriched nowadays which can be used to analysis the clash of extreme event.The paper mainly introduce different method of the stressing-test and how stressing-test be applied in the credit risk assessment. The last part of the paper separately research the Shanghai Rural Commercial Bank's real-estate loan risk and its total loan risk through sensitive analysis and situation analysis. The paper elaborates the practical application of the stressing-test through the case. SRCB's real-estate loan risk analysis outcome demonstrates that the value at risk of the loan is influenced by the interest rate. The conclusion emphasizes necessary of the stressing-test on banks on the guard of the real-estate control.The last part of the paper gives some suggestions. Firstly, it is necessary to perfect the stressing-test model according to China's basic condition. Secondly, it is necessary to launch date statistic and make sure its comprehensive and trusty. Thirdly, it is necessary to increase the practicability to keep the credit risk at a low level.