The Research Of Commercial Bank Credit Risk Measurement

Credit risk in financial markets is the most ancient, the most important form of risk,while is the main risk in financial institutions. Since credit risk from first to last, itaffects all aspects of social and economic life. As commercial banks is credit center ofactivity, so it will be directly and comprehensively in the face of credit risk, credit riskmanagement on the importance of commercial banks is also more prominent. Innineteen ninties, the emergence of financial crisis and the impact of the world economyand area, so the world’s eyes are turned on financial markets, financial institutions andfinancial risk. scholars have tried to analysis the financial crisis, improper credit riskmanagement is the root of the financial crisis. Improper reason of credit riskmanagement of credit risk is oversight, the underestimation of credit risk and the lackof credit risk control. Therefore, how to accurately identify and measure the risk, howto take effective measures to control credit risk, is a major challenge to commercialbanks.Firstly, the related concepts of credit risk is defined, and the credit risk theory,analysis of the traditional credit risk measurement model, Z-Score model to determinethe critical value for china. Secondly, this paper compares the structure, basic principle,advantages and disadvantages between the modern credit risk measurement models,analyse its applicability in China, replacing some parameters of modern credit riskmeasurement model are discussed. Finally, design a three-dimensional quantitativemeasurement model of China’s internal credit risk rating method for actual situation ofour country, puts forward relevant suggestions for China’s commercial banks toeffectively measure and manage the credit risk.