Commercial bank credit risk management based on grey incidence analysis

Abstract

Credit asset quality problem is one of the obstacles limiting the further development of commercial bank, the research on the credit risk becomes an important part of the implement of the commercial bank's risk management. The incidence identification method is established to investigate whether the industry and macroeconomic factor could affect impaired loan ratio of bank using the grey incidence analysis method. From the angle of the industry, the result can determine the risk deviation scope in the grey risk control process which offers new content and ideas within the grey risk control. The results indicate that the impaired loan ratio is different with diverse industry's influence and the macroeconomic also affect it. Under the guidance of the principle of “differential treatment, differential control”, this research will help to strengthen the implementation of differentiated credit policy, focus on guiding and promoting the optimization of credit structure, so as to maintain a reasonable size of credit facilities and build a steady currency credit system.