Research On Internal Rating System Of C Bank

Nowadays,with the development of Chinese economy comes to new stage,Chinese banking business face to significant strategic challenges and various contradictions.More and more listed companies are deep in financial crisis in Henan province since 2018.The default rates of bank debts increase sharply,the quality of assets of commercial banks are decreasing these years.Credit risks are always the main risks in the operations of commercial banks.The most important method to manage credit risks of every single commercial banks is the customer internal rating system,as a basic tool which was created and used in new capital accord of commercial banks,the quality of Internal rating influence deeply in the efficiency and results of bank credit applications.Internal rating system is a very significant way to control credit risks in commercial banks.Every loan customer should be managed in this system in order to make sure that the the compliance of bank credit and loan.Internal rating method is still stay in initial stage in China,and there is still a long way to go to improve.Therefore,the researches and discussions of commercial bank internal rating system are very meaningful for practical experience.In this paper,I summarize the theory of bank credit rating methods firstly,sketch out the concepts of credit risks,credit rating methods,traditional rating methods and modern rating methods,point out the important effects of rating principles in risks control of bank operation.Secondly,I quote the rating model and rating methods in practical applications,overview the researches about credit rating methods domestic and overseas.Finally,there is a comprehensive analysis to the customer internal rating system of C bank.Point one,there is a description of c bank internal rating system in the paper.Point two,analyzing the customer internal rating system from various aspects such as processing and risks identifying etc.,point three,finding out the probable problems of customer internal rating system in C bank.Pointing out there too much qualitative analysis in the rating score model of C bank.There should be a protection to listed companies when setting up the rating score card.In that case,it s difficult to judge a listed company which trap in financial crisis in the lack of quantitative analysis,and might be overrate which lead to credit risks happen.Meanwhile,I find out several problems in C bank's internal rating system such as the imperfection of system,the unprofessional of bank technicians and the formalism of process.Also,this paper bring up some suggestions to improve the current situation of C bank's rating system.These suggestions could solve the problems of credit risks which are in detailas follows: establishing quantitative analysis model and completing the internal rating management system.At last,I use FRYY GROUP as an example,applying both of the rating methods of C bank and improved methods in FRYY GROUP,then comparing the results between them and get a conclusion finally.This paper give recommendations for improvement of C bank internal rating system.It is a combination of theory and practice,researching the rating method which is fit for the need of market and the requirement of risk comtrol.I do hope this paper can provide a valuable reference for the construction of commercial bank internal rating system in our country.