发布时间 : 星期五 文章金融银行信用风险管理外文翻译文献更新完毕开始阅读23df9ef9710abb68a98271fe910ef12d2af9a9b2
金融银行信用风险管理外文翻译文献
Fig.1 The model of incentive mechanism with knowledge management
From Fig.1,we can see there are both stimulative and punitive measures in the incentive model of knowledge management for financial banks.With the incentive mechanism of knowledge management in financial banks,the staffs will work harder to manage risks and to acquire both material returns and spiritual encouragement.
? Yellow-card warning ? Red-card warning ? Dismissing or laying-off ? Wealthy rewards ? Training ? Promotion III.MANAGING CREDIT RISKS IN BANKS WITH KNOWLEDGE
MANAGEMENT
There are four blocks in managing credit risks with knowledge management.We can show them in Fig.2:
Managing credit risks and feeding back Reducing credit risks Distinguishing risks credit Assessing and calculating credit risks Fig.2 The blocks of managing credit risks
A.Distinguishing Credit Risk
Distinguishing credit risks is the basis of risk management.If we can’t recognize the risks,we are unable to find appropriate solutions to manage risks.For example,the United States subprime crisis in 2007 was partly caused by that the financial institutions and regulators didn’t recognize the mortgage securitization risks timely.With knowledge management,we can make out some rules to distinguish credit risks,which are establishing
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金融银行信用风险管理外文翻译文献
one personal credit rating system for customers and setting up the data warehouse.We can use the system to analyze customers’credit index, customers’credit history and the possible changes which may incur risks.At the same time,we should also watch on the changes of customers’property and income to recognize potential risks. B.Assessing and Calculating Credit Risk
After distinguishing the credit risks,we should assess the risk exposure,risk factors and potential losses and risks, and we should make out the clear links.The knowledgeable staffs in banking should use statistical methods and historical data to develop specific credit risks evaluation model and the regulators should establish credit assessment system and then set up one national credit assessment system.With the system and the model of risk assessment,the managers can evaluate the existing and emerging risk factors,such as they prepare credit ratings for internal use.Other firms,including Standard ＆Poor’s,Moody’s and Fitch,are in the business of developing credit rating for use by investors or other third parties.TableⅠshows the credit ratings of Standard＆Poor’s.
TABLE I
STANDARD＆POOR’S CREDITT RATINGS
Credit ratings AAA AA A BBB BB B CCC CC C D
After assessing credit risks,we can use Standardized Approach and Internal Rating-Based Approach to calculate the risks.And in this article,we will analyze how Internal Rating-Based
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Implications Best credit quality,extremely reliable Very good credit quality,very reliable More susceptible to economic conditions Lowest rating in investment grade Caution is necessary Vulnerable to changes in economic Currently vulnerable to nonpayment Highly vulnerable to payment default Close to bankrupt Payment default has actually occurred 金融银行信用风险管理外文翻译文献
Approach calculates credit risk of an uncovered loan.
To calculate credit risk of an uncovered loan,firstly,we will acquire the borrower’s Probability of Default(PD),Loss Given Default(LGD),Exposure at Default(EAD)and Remaining Maturity(M).Secondly,we calculate the simple risk(SR)of the uncovered loan,using the formula as following:
SR=Min{BSR(PD)*[1+b(PD)*(M-3)]*LGD／50,LGD*12.5} (1)
Where BSR is the basic risk weight and b(PD)is the adjusting factor for remaining maturity(M).
Finally,we can calculate the weighted risk(WR)of the uncovered loan,using the following formula:
WR=SR*EAD (2)
From(1)and(2),we can acquire the simple and weighted credit risk of an uncovered loan,and then we can take some measures to hedge the credit risk. C.Reducing Credit Risk
After assessing and calculating credit risks,banks should make out countermeasures to reduce the risks.These measures include：(1)Completing security system of loans. The banks should require customers to use the collateral and guarantees as the security for the repayment,and at the same time,banks should foster collateral market.(2)Combining loans with insurance.Banks may require customers to buy a specific insurance or insurance portfolio.If the borrower doesn’t repay the loans,banks can get the compensation from the insurance company.(3)Loans Securitization. Banks can change the loans into security portfolio,according to the different interest rate and term of the loans,and then banks can sell the security portfolio to the special organizations or trust companies. D.Managing Credit Risk and Feeding back
A customer may have housing loans,car loans and other loans,so the banks can acquire the customer’s credit information,credit history,credit status and economic background from assessing the risks of the customer based on the data the banks get.By assessing and calculating the risks of the customer,banks can expect the future behavior of the customers and provides different service for different customers. Banks can provide more value-added service to the customers who have high credit rates and restrict some business to the
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customers who have low credit rates.At the same time, banks should refuse to provide service to the customers who are blacklisted. Banks should set up the pre-warning and management mechanism and change the traditional ways,which just rely on remedial after the risks broke out.In order to set up the warning and feeding back mechanism,banks should score credit of the customers comprehensively and then test the effectiveness and suitability of the measures,which banks use to mitigate risks.Finally, banks should update the data of the customers timely and keep the credit risk management system operating smoothly.
IV.CONCLUSION
In this paper,we first discuss the implications of knowledge and knowledge management.Then we analyze the credit risks of financial banks with knowledge management. Finally,we put forward ways for banks to manage credit risks with knowledge management.We think banks should set up data warehouse of customers’credit to assess and calculate the credit risks,and at the same time,banks should train knowledgeable staffs to construct a whole system to reduce risks and feed back.With knowledge management,banks can take out systemic measures to manage customers’credit risks and gain sustainable profits.
ACKNOWLEDGMENT
It is financed by the humanities and social sciences project of the Ministry of Education of China(NO.06JC790032).
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