Bank Credit Risk Metrics Management Studies

Recently, with the globalization of finance and the fluctuation of international finance market, credit risk become more and more serious, and all country's banks and investors face unprecedented credit risk. The practice of international banking demonstrated that the risk measurement and management is one of the perpetual subjects in commercial banks management.Owing to the asymmetry of the credit risk distribution and data deficiency, the measurement and management of the credit risk is the most challenging problem in the area of risk management.The Basle Accord II encourages the bank to establish IRB and develop risk measurement and management model. The bank can input risk elements that include probability of default, loss given default, maturity and exposures into the risk weight functions that are provided by Basel committee and obtain the capital requirement. Obviously, it is imperative for national commercial banks to enhance research on IRB and risk measurement and management model, narrow the gap between international banking and domestic banking.As the largest developing country, risk in banking industry is the main component of financial risk. it is significant to study advanced credit risk models used by international banks. Making research on the theory and methodology of credit risk model and applying it to the practice of risk management will, in both theoretical and practical fields, significantly improve the standard of credit risk management and quality of our commercial banks' assets as well as prevent and resolve financial crisis.