Credit Risk Rating Systems Analysis Of B City Commercial Banks

The increasing globalization and fluctuation in financial world have brought unprecedented challenges to bankers and investors all around the world. Since the last decade, the technique, instrument, and method for credit risk management have been developed rapidly. Especially, with the advent of Basel II, Western banks are seeking for new approaches to build or develop their own Internal Credit Risk Rating systems.As the Chinese banking sector is expanding its opening day by day, it becomes an emergent issue to bring the Chinese Banking organizations more in line with internationally recognized practices in the field of credit risk management, which is the key facet of banking management. Moreover, for Chinese banks and researchers, both the requisite technologies and experiences in this field are just in the beginning steps, yet somewhat lagged behind.The main purpose of this paper is to give a complete and systematic discussion on the theoretic basis, methods and formalities of the five-class system of credit assets, which is currently used in the People's Bank of China, together with the introduction and comparison of other contemporary formalities of credit assets adopted by other commercial banks. Then we give a deep and concrete analysis of the situation and problems in the current operation of the credit assets five-class system in the B city commercial bank in Anhui province. On the basis of our analysis and specific circumstances, we proposes proper suggestions and plans for the B city commercial bank in the improvement of its credit assets system, elucidating the importance of standardization, effectiveness, and manageability in the credit assets five-class system.The main contributions of this paper are:①Using the Z-score credit risk...