The Research Of Credit Risk Evaluation In Commercial Banks For Smes

The credit evaluation system of commercial bank is the method to divide the customers into different credit levels, which helps the bank to distinguish measure, monitor and control the credit risk. It based on the possibility of contract violations. The result gives an important support for the people to do the credit analysis, credit approval, loan pricing, post-loan management, economic capital allocation and evaluation provide. However, the banking credit evaluation system for SMEs is not good enough at this stage. In practice some defects exist in the credit evaluation did not play its due role. How to improve SMEs credit evaluation system of commercial banks is the problem needed to solve for banks.Firstly, we analysis the condition of SME financing today, found some of the problems that commercial banks in SME credit evaluation system. Then use the new Basel Capital Accord in the IRB, to discuss about how to set up a modern credit risk models in China for SMEs. Finally, through a SME credit rating system of a large commercial bank in China, we learn how to improve the credit rating system for SMES, and what's the difference between the new model with the old one, give some suggestions and comments of myself.