Relative Research Of Credit Risk Of Chinese City Commercial Banks

The major risk that Commercial banks face is credit risk. Management of credit risk includes identification, evaluation, measurement, alert, managing strategy and means, and so on, of which how to carry out identification and evaluation are key to management of credit risk.In September12,2012, Basel Committee on Banking Supervision(BCBS), consisting of supervision departments and senior delegates of27countries, brought consensus on the content of Basel III, reflecting global banking industry into the third times of Basel III. The innovation in this new accord is providing three means to assess credit risk and operation risk.According to BCBS, adopting three different way separately is helpful for sensitivity of credit and operating risk. BSBC permits banks and supervisors to choose one or several means suitable mostly for developing level of bank industry and financial market, the prominent method is the Internal Rating-Based Approach(IRB).IRB has been explored in the western developed countries, attaining active results. Lots of experts and scholars in China have done excellent researches, risk management in large-size national banks and some of joint-stock banks transferring gradually from expert judgment and score card to modeling. Therefore, research and applying of IRB is of practical significance to strength banking risk management for domestic financial community.In the paper new Basel III was introduced, the utility of IRB analyzed through a case, the strategy of implementing discussed.The paper got7chapters:Chapter1was Introduction of this research, briefly introducing the background, significance, purpose and the methods of the paper; In Chapter2there were about predecessors’research results of IRB at home and abroad; Chapter3is of both new Basel Accord and IRB; Chapter4introduced the developing and application of IRB all over the world; Kind of empirical research was done in chapter5, to reflect the IRB level of city commercial bank based on assessment and analysis on IRB in A bank; The problems existing in the process of applying IRB to domestic commercial banks were researched in chapter6.In Chapter7,we come to some important conclusion,and then some counter-measures were put forward.