New Basel Capital Accord And Commercial Bank Risk Management

This paper aims to form the Basel rules and discusses the evolution process of the Basel agreement in the bank risk management application. Every time a new agreement on the by major financial events for the banking industry from the Basel I production to the Basel agreement III appearance is caused by the risk management of a kind of innovation and development. At present, China's banking overall risk management level and international active bank still has large gap and still need to learn experience from international advanced bank risk management concepts and experience in the next few years, moreover, we should work hard in combination with the characteristics and requirements of commercial Banks and strive to improve their risk management.We focus on the new capital in the agreement of capital regulation, the cycle regulatory and internal rating system of credit risk. And we focus on the novelty of the embodied in the study of China's banking supervision cycle the cycle the enlightenment of the provision of capital. In this paper we first make prospective capital planning and provision plan; Secondly we research deeply in economic cycle, ensure that the bank cross cycle for steady development; At last, by implementing the new agreement, we perfect the relevant information system ground support and data accumulation. This paper stress on the key lies in the credit risk in the banking industry rating system of internal risk management from the practice of the breach, identification, internal rating system operation process in the bank and debt rating and the Angle of the difference between the five classifications are discussed in detail.The conclusion includes:the evaluation institutions should through the RWA measurement for risk analysis, adjust the structure and performance appraisal services, and guide credit rating optimal, profit resources into good customer, products and industries and regions; relevant authority should adjust capital hold level according to regulatory changes in the cycle of economic cycle. That is, along with the macro economy and change, the periodic fluctuations in the economy shrinking and, thereby, to hold capital increase later when the recession may be a great loss provide enough buffer; internal rating system for commercial Banks of the debtor's credit rating and debt rating of the establishment of the reference, reflecting the ruler method customer credit risk level and risk parameters (PD) interval the mapping relationship of LGD level or with the customer debt rating of the corresponding relation; finally, through analyzing customer debt rating and category five classification, the differences and relations of that debt rating is more in line with the requirements of the new Basel capital accord, but category five classification in the future for commercial bank itself for a long time, there are still exist necessary.