Application Of Internal Rating-Based Approach In Credit Risk Management Of Foreign Trade Enterprises In Commercial Banks

Foreign trade enterprise credit business is an important part of China’s commercial bank credit business.In recent years,under the influence of the sino-us trade game and the change of domestic economic environment,the operating pressure of China’s foreign trade enterprises has become prominent,and the debt repayment ability has declined to some extent.The loan default risk thus generated has become one of the important sources of credit risk of China’s commercial Banks.In view of this,commercial Banks generally attach importance to the management of loans to foreign trade enterprises and try to strengthen the early warning and disposal of loan risks to foreign trade enterprises by implementing some risk control measures.However,because of the foreign trade enterprise specialized credit risk management started late in our country,the imperfection of the risk control mechanism,the traditional credit risk assessment method,especially credit risk identification method,cannot adapt to the complex financial and economic environment,the current lack of actual targeted on foreign trade enterprise credit risk,so the current domestic commercial bank for foreign trade credit risk control effect is not significant,and the state strengthens macro prudent management,effective control of financial risk requirements there is distance.At present,the comprehensive understanding and deep understanding of the our country foreign trade enterprise credit risk characteristics,combined with the commercial bank loan business of foreign trade practices,research,introduced for foreign trade enterprise credit risk management,effective foreign trade enterprise credit risk identification,measurement,control,is our country commercial bank facing an important and urgent problem.This paper aims to study the theory and practice of internal rating method in credit risk management of foreign trade enterprises in commercial Banks.This paper first analyzes the credit risk characteristics of foreign trade enterprises in China,compares the general methods of credit risk management of foreign trade enterprises,and points out the existing problems.On this basis,this paper discusses the applicability and comparative advantages of internal rating method in the application of credit risk management in foreign trade enterprises of commercial Banks,and points out that this method can solve the problems existing in general management methods.Finally,the rationality and applicability of internal rating method in credit risk management of foreign trade enterprises in commercial Banks are verified by specific cases.The research of this paper is composed of six chapters:The first chapter is the introduction,which clarifies the research background,purpose and significance of this paper.The second chapter reviews and summarizes the relevant theoretical knowledge of credit risk and makes a specific introduction to the internal rating method.The third chapter analyzes the present situation of credit risk management in foreign trade enterprises of China’s commercial Banks in detail,summarizes the credit risk characteristics and general management methods of foreign trade enterprises,and points out the problems existing in management.The fourth chapter from the applicability of the method analysis,comparative advantage,application steps and specific requirements in the application of four aspects,pointed out that the method is more suitable for China’s commercial Banks foreign trade enterprises credit risk management.In chapter five,the rationality and applicability of the method are verified by applying the internal rating method to scientifically quantify the credit risk of target enterprises,and the application effect of the method is listed.The sixth chapter summarizes the full text,expounds the work completed in the thesis,draws research conclusions and countermeasures and Suggestions.This paper argues that,at present,China’s foreign trade enterprises are affected by the changes of internal and external environment,such as Sino-US economic and trade game and domestic economic structure adjustment,the debt repayment ability decreases and the risk of credit default increases.In view of the current situation of credit risk of foreign trade enterprises,this paper shows that,first,the internal rating method is suitable for the credit risk management of foreign trade enterprises of commercial banks in China,which meets the requirements of strengthening macro-prudential management and effectively controlling financial risks.Second,compared with traditional and modern VaR credit risk management methods,the internal rating method can accurately and objectively evaluate the credit risk of foreign trade enterprises and meet the practical requirements of credit risk management of foreign trade enterprises of commercial banks in China.Third,in the credit risk management of foreign trade enterprises of commercial banks in China,we should comprehensively examine financial and non-financial factors,especially pay attention to non-financial factors.There are also the following problems in the application of internal rating method in the credit risk management of foreign trade enterprises,including the inaccuracy of the index system,the imperfection of the database,the deviation of the rating system,the lack of standardization of the credit risk management system,and so on.to solve these problems,we need to establish a suitable rating index system from the comprehensive credit risk characteristics of foreign trade enterprises,and improve the rating database processing system according to the operating characteristics of banks.Regular assessment and rating system timely adjust the system deviation,establish and improve China’s commercial bank credit risk management system and other four aspects to make corresponding improvements and improvements.