Scheme background

The key to improve the risk management level of retail business of commercial banks is to enhance the quantitative level of retail risk and achieve the automation and standardization of retail business processing. The core of the retail internal rating law requires banks to realize the accurate quantification of retail business risks. By constructing the internal rating system, commercial banks meet the regulatory requirements of the banking regulatory authorities for the primary internal rating law and actively respond to the challenges and opportunities brought by New Basel Capital Accord; moreover, by considering the long-term goals required by the future development scale of credit granting business and the requirements of risk management and control, commercial banks establish an independent internal rating system to provide professional rating services for the credit granting business of each business line and the reference of credit granting decision for credit granting management personnel.

Scheme content

The retail internal rating system mainly includes two aspects: retail internal rating database and retail internal rating application. The entire solution ensures that the retail internal rating system is built to satisfy the technical requirements and business implementation requirements. System technical requirements include the system architecture requirement, platform selection requirement, system performance requirement, system stability requirement, system scalability, requirement of connection with existing and proposed systems, system operation and maintenance requirements, etc. Business implementation requirements include decision support and strategy deployment. The overall framework of the retail internal rating system is as follows:

Scheme value

The key to improve the risk management level of retail business of commercial banks is to enhance the quantitative level of retail risk and achieve the automation and standardization of retail business processing. The core of the retail internal rating law requires banks to realize the accurate quantification of retail business risks. The construction of retail internal rating system can bring the following values to commercial banks: 

1. Meet the regulatory requirements of the banking regulatory authorities for the primary internal rating law and actively respond to the challenges and opportunities brought by New Basel Capital Accord. 

2. Establish an independent internal rating system to provide professional rating services for the credit granting business of each business line and the reference of credit granting decision for credit granting management personnel. 

3. The quantitative risk control platform is established to improve the credit risk management mode, and thus promote the construction of commercial bank credit risk management.