Optimization Research On Credit Rating Index System Of Our Country’s Commercial Banks

Commercial banks are now faced with many risks, such as credit risk, market risk,and operating risk. Because credit risk is the most important element, it becomes thecore of Bank Management. Bankers should pay much more attention to credit risk,especially under the background of global economic crisis and the unstable worldeconomic situation, and this is also one of the requirements of the New Basel CapitalAccord. The New Accord encourages some perspecting banks to adopt the InternalEvaluation Method, which will do help to know better about moneylenders’ crisis andbank portfolio. Despite that commercial banks in China are still too weak to adopt theInternal Evaluation Method, banks should put credit risk as their most pressing issue.As the foundation of Credit Risk Management, the Credit Rating System is theembodiment of rating principle, rating element and rating method, and it is also thekey element to rate their clients’ credit. Therefore, combining our national conditions,banks should establish a scientific model, which is helpful for doing researches abouttheir clients’ credit elements. In this way, banks could improve their risk managementability and also stimulate the modernization of commercial banks, which can enhancebanks’ compitional ability.This paper analyzes how to improve the credit ranking system of the cilents.Firstly, the paper carries on some analysis about the principle of the credit ratingsystem; secondly, by consulting the credit rating system of many domestic andinternational enterprises, so as to study the status quo of Stated-owned Commercialbanks; thirdly, based on the analysis above, it pickes up several elements useful to therating system of the commercial banks. Finally, the paper chooses the manufacture toconduct the research, including Mann-Whitney U test, correlation analysis, PrimaryComponent Analysis, Factor Analysis, Logistic Regression. At the end of the paper, itestablishes the new rating system and validates its effectiveness.