Research And Application On Credit Rating System

One of the major concepts for the Basel II Accord is to establish the Internal Ratings Based Approach for commercial banks.Since the outbreak of the global financial crisis triggered by the US subprime mortgage crisis in 2008,many of the financial institutions,especially banks,strengthened the risk evaluation and management on loan products.They also put the construction of Credit Management System and Internal Risk Management System on the agenda.Since 2017,many P2 P financial institutions closed down,mostly because of the debt crisis leading to the break of the capital chain.China Banking Regulatory Commission and many financial institutions all strengthened credit supervision and risk management.At present,most of state-owned banks and large-scale commercial banks in China have gradually established credit risk rating system.They adjusted the organizational structure of credit management,and established a relatively complete rating system,which included customer rating and debt ratings.They also strengthened the construction of IT systems,developed and promoted the operation platform of credit management system,customer management and internal rating system,to ensure the effective operation of the internal rating system from the organizational and technical perspectives.However,many small and medium-sized banks,such as city commercial banks and rural commercial banks,are just in the initial stage of system and platform construction.This paper first reviews and studies the research history and current status of foreign and domestic customer credit ratings.It analyses and compares the quantitative analysis and qualitative analysis rating methods.Then,a brief introduction and shortcoming analysis of the existing rating method of a small-sized bank in Liaoning Province were carried out.Based on this,an improved rating model based on AHP and fuzzy comprehensive evaluation algorithm is proposed.The rating method and process is gradually demonstrated using this algorithm.Then it analyzes the workflow of customer credit rating system of this bank,to divided the system into three modules including Customer Information Management,Financial Information Management and Credit Rating.It also showed the design and implementation of these three function modules.Finally,a small-sized enterprise in Dalian was taken as an example to verify and test the improved rating system.The results show that the operating results of the system are relatively accurate,with no obvious functional defects.It also shows that the improved algorithm can make more accurate rating results for customers.This system is based on the theoretical knowledge and algorithm of credit rating.It is built upon J2 EE platform,and use Oracle database to design and record the management data information in the data management process.For the whole system,the data layer,the middle layer and the application layer are designed in three layers,and the object-oriented method is used to develop the MVC framework of J2 EE.