International Comparison and Improvement for the Credit Risk Management Model of China's Commercial Banks

Credit risk management of commercial banks have evolved into modern models representative of IRB written in New Basel capital accord.China commercial banks still adopt methods based mainly on qualitative analysis and experiences which have many shortcomings in terms of risk and capital quantification.With path dependence and careful examining of the defects in China commercial banks'credit risk management and a comparison of the two methods, this article constructs a path choice for the credit risk management of China commercial banks.