The Performance Measures Of Credit Risk

The credit risk adjusted performance measurement is a kind of management mode to measure the return on risk adjusted capital, which was initiated by the Bankers Trust of the United States at the end of 70's in the 20th century. Our banking had certain research on the credit risk adjusted performance measurement, but still had not become to form the credit risk mode taking it as the core. Therefore, it is necessary to carry on the research of the credit sample combination analysis and credit risk management mode on the base of the credit risk adjusted performance measurement. The aim is to improve the credit risk control ability of our banking.In the first place, the author analyzed and investigated the credit risk adjusted performance measurement theories in this article. Although our banking had already acquainted with the credit risk adjusted performance measurement method, we had attempted to introduce it into our management system in the past few years. But the result was not completely in accordance with what people desired. The main reason was the essential conditions how to import the credit risk adjusted performance measurement was not securable in our country. The author considered our banking could start with the following methods to solve this problem. Firstly, we should raise the quality of the statistical data. Secondly, we should build up the internal rating system adapting to our banking. Thirdly, we should import the basic principle of the credit risk adjustment performance measurement. In addition, it was quite necessary for our banking to establish the bank investigation mode suiting to the credit risk adjusted performance measurement. The author put forward how to establish the evaluation system of credit quality in bank's branch and the evaluation system of credit management of the client's account executive.After the essential conditions how to import the credit risk adjusted performance measurement are securable, we should proceed to the research of the operation method and the application. Then the author analyzed the credit sample combination analysis on the base of the credit risk adjusted performance measurement. This article divided the calculation result to different credit risk groups to configure the capital rationally. At the same time, following the concrete and thorough research, and according to actual circumstances of our banking, the author initiated the credit risk management mode.