The Bank Credit Risk Assessment Model Based On BP Neural Network

The letter of credit has the widest use in the current international trade due to its unique advantages.In the international trade,importers and exporters do not believe in each other,so there is no confidence between them,and the letter of credit can be a good solution to this problem.The letter of credit is a conditional payment promise provided by the bank,which can save the exporter from the crisis of trust and replace the commercial credit with the bank credit,thus ensuring the normal and smooth conduct of the trade between the importer and the exporter.It is because of this advantage of the letter of credit that the letter of credit has been widely used.In the current,China's commercial bank's credit business is also in the competition to get faster and faster development.In particular,after China's accession to the WTO,a large number of foreign banks first entered the field of credit business competition,so China's commercial banks are in the face of market share reduction in the potential crisis and need to increase the letter of credit business scale to increase bank revenue.In terms of banks,the letter of credit business have both high returns and risk characteristics,on the one hand,the bank can access fees,such as issuing fees,negotiable fees and revision fees;on the other hand,banks as risk holders have to face the credit risk,national risk,operational risk and other risks.Therefore,how to measure these different types of L / C risk and control the risk at a lower level has always been the focus of the bank's focus on the credit business.Based on the above research background,this paper constructs the risk assessment model of bank letter of credit by using BP neural network method to qualitatively study the risk of letter of credit and risk assessment of credit.It is proposed to use the risk assessment model to identify,measure and evaluate the risk of bank credit from the perspective of risk management.After the construction of BP neural network bank credit risk assessment model,this paper used the Z bank Wenzhou branch of the letter of credit business data to test the model,the results show that the model has a very good degree of validity and reliability,to accurately assessthe bank credit Risk level.The risk assessment model of bank credit based on BP neural network is very theoretical and practical.It can help banks to clear the risk level of the business before making a decision to accept a letter of credit business.Finally,the paper based on the BP neural network credit risk assessment model for banks to prevent credit risk to provide some suggestions and measures.