IRB Approach and Credit Risk Management in China Commercial Bank

Since1990s when the Credit Risk Management of China Commercial Banks have made great achievements, there have existed many problems in this field. For instance, there is no mature risk management techniques and no independent risk management department and full time risk manager that can manage the credit risk and shoulder the responsibility of risk management independently. So the gap between China's present ability and the requirement of IRB is very big. In order to adapt the IRB requirement of BaselⅡand to improve the ability of credit risk management, China commercial banks has to manage to establish a data base, develop credit risk model, speed up financial reform and create a good environment for credit derivatives market.