Commercial Bank Credit Risk Management System Construction

The credit risk is always the most important risk form of banking industry andthe financial industry, is the main object and core contents of financial institutions andregulatory departments to prevent and control. The credit risk of bank credit businessbrought about and control has been the focus and difficult problem for commercialbanks. With the continuous development of international financial market, and theintroduction of new Basel agreement, China’s banking industry also faces newchallenges in the management of credit risk.China’s traditional by credit officers to borrowers experience credit managementmode the competent judge for a long time to solve the problem of single borrowerrating. In the transformation in the new economic situation at home andabroad requirements, commercial banks generally on the borrower’s creditrating and default using a more scientific method and complete the automatic analysisand recorded by a computer system. The effective application of the credit riskmanagement technology in the credit process, can raise the level of credit riskmanagement of commercial banks, improve the commercial bank market competitionposition.This article from the construction of credit risk system to write, is a technicalevaluation of the borrower’s credit risk(Credit Rating Association), credit ratingand default probability using the pricing of credit rating, and loan and related systemconstruction four aspects in detail. Proposes an effective solution for the effectivemanagement of credit risk of the borrower. As an important part of the credit risk ofcommercial bank credit management, this paper also focuses on the descriptionmethod, credit risk management theory and practice, but also for the more detailedanalysis on the other parts in the credit management and explanation.Length of be confined to, in the system implementation section, only focus onthe functional point of risk identification and application of credit related wereintroduced, the function point other credit management link was onlya column type is a necessary part of.