Research On Credit Risk Control Of Jilin Jiutai Rural Commercial Bank

Jiutai rural commercial bank has always been in the leading position in the financial field of Northeast China,shouldering the mission of helping the healthy development of the economic system in Northeast China,and playing an important role in capital allocation financial activities such as financing.As a special enterprise operating currency credit,the most difficult problem of Jiutai rural commercial bank is how to effectively manage the risks in the process of operation.Among the various risks,credit risk is the most important risk faced by Jiutai rural commercial bank.It is the sustainable and healthy development of Jiutai rural commercial bank to improve the credit risk management system while measuring credit risk scientifically The important condition of the bank is also the severe challenge faced by Jiutai rural commercial bank.Generally speaking,the credit risk of commercial banks not only refers to the default risk of borrowers faced by commercial banks,such as the difficulty of loan recovery,but also refers to the credit risk of commercial banks themselves.This paper focuses on the current situation of credit risk of Jiutai rural commercial bank,taking the credit risk faced by commercial banks as the starting point,selecting the modern credit risk assessment method to measure the credit risk of Jiutai rural commercial bank.Based on modern credit risk assessment method,this paper studies and analyzes Jiutai rural commercial bank.First of all,it summarizes the theory of credit risk management of commercial banks,as the basis of follow-up research.Secondly,four main models of modern credit risk assessment methods are discussed in detail,including the main ideas,advantages and disadvantages,applicability and other aspects of the model.By comparing four modern credit risk measurement models,KMV model is selected to study Jiutai rural commercial bank.Thirdly,according to the financial indicators of Jiutai rural commercial bank,this paper studies its credit business structure and summarizes the current situation of credit risk of Jiutai ruralcommercial bank.Finally,in the empirical analysis part,this paper selects the financial data and stock trading data of nine agricultural commercial banks in2017-2019,calculates the relevant parameters,and constructs KMV model to quantify the credit risk of nine agricultural commercial banks since listing.At the same time,KMV model is used to calculate the default distance of other rural commercial banks and urban commercial banks,and the empirical results are analyzed.In addition,this paper summarizes the main factors that affect the credit risk of Jiutai rural commercial bank,in order to make a useful supplement to the credit risk management of Jiutai rural commercial bank,and provide a scientific basis for the credit decision-making of Jiutai rural commercial bank.Empirical research shows that,at present,there is a high credit risk in Jiutai rural commercial bank.Compared with traditional credit risk assessment methods,KMV model has obvious advantages in convenient operation and strong applicability.By measuring the default distance,we can see that the default distance of Jiutai rural commercial bank is relatively small.Since its listing,its default distance has declined rapidly and the default risk has increased significantly.In recent years,Jiutai rural commercial bank has not only opened a gap with the national benchmark rural commercial bank,but also has the risk of being replaced by its location advantage in Northeast China.KMV model is used to quantify the credit risk of Jiutai rural commercial bank,which can dynamically reflect its credit risk status.Therefore,in view of the calculated default distance,this paper analyzes the main factors affecting the credit risk of Jiutai rural commercial bank,and puts forward several policy suggestions as follows: first,we should speed up the business transformation,expand the credit business on the basis of comprehensive consideration of the risk resistance ability;second,we should strengthen the credit supervision,and improve the loan according to the business characteristics of serving the farmers,rural areas and small and micro enterprises Thirdly,we should innovate the use of credit risk management tools,strengthen the internal credit rating,and fully use the rating methods of professional credit rating agencies for reference;finally,we should increase the training of credit risk management personnel,improve the professional quality ofrelevant personnel,and develop a reasonable performance evaluation mechanism,In order to effectively prevent and control credit risk.