The Applied Study Of Logistic Model To The Credit Risk Management Of Commercial Banks Of China

The commercial banks of China face all kinds of financial risks in business operation and management, but credit risk is always the important risk. Credit risk not only has a significant impact on the commercial banks'operation, but also impact a country's financial system stability because of the domino effect, even influence the global economy's stability and development. Therefore, the effective management of credit risk not only helps the commercial banks'safe operation, it also helps the stability of the economy and finance. In recent years, with the reformation of our country's finance system, the opening up of banking, the entrance of foreign banks and the development of financial innovations, our banks have great challenges in the international competition. In this situation, our commercial banks should study the credit risk management technology which is fit for the development of commercial banks. Only in this way can the commercial banks improve the level of credit risk and the overall competitiveness.First of all, the article analyzes the definition and characteristics of the credit risk and describes the concept and conditions of commercial bank credit risk. The second, the paper depicts and evaluates the current situation of the commercial bank of China. The third, the paper reviews the traditional and advanced risk management methods and points out the logistic regression model is suited to the credit risk management of our commercial bank. At last, based on our commercial bank, the author uses the Logistic model to measure the credit risk of the custom loan and tries to find the factors which affect the customer credit risk.Undeniable, it is important for the commercial bank to the establishment of credit risk management model which helps to improve our commercial bank's credit risk management. However, there are some deficiencies in the commercial bank's system, which also effect the credit risk management of the commercial bank. Therefore, our commercial bank should make improvement in these shortcomings.