The Research On Credit Risk Management Problems Of Commercial Banks In Our Country

After our country entered the WTO, the home commercial banks face the ordeal. Compared with the abroad, the level of credit risk management is low. Methods of credit risk management change each passing day, and it is tendency to analyze risks through model. So if we want to solve the problems of risk management completely, we must adopt the advanced way of risk management.This article analyses and compares six important and effective models of credit risk management, sets forth the probability of application in domestic commercial banks. We see about the core index-DD of the model of KMV using domestic capital market data and compare the result with that of rating system of home commercial bank and educe several conclusions as follows:(1) The rating result of KMV is lower than that of home commercial bank.(2) Default loss of the loan can be numbered with the model of KMV, the banks can withdraw loss reserve according to it.(3) The model of KMV can reflect the credit risk faced by commercial banks in time, since it uses capital market data.(4) One of the key elements of the model of KMV is abundant default data with detailed analysis. Home commercial banks should upbuild their own default database as soon as possible.This article brings some advice concerning the consummation of credit risk management of home commercial banks based on the conclusions above.