Internal rating limit of internal rating [1]

(1) is not independent and easily influenced by subjective factors. In the current market economy environment, due to the loan interest relationship between banks and enterprises, the account managers of commercial banks are often lax in controlling customers and expanding business scale, which is prone to the phenomenon of relationship loans.

② The rating method is too simple and the risk disclosure is insufficient. At present, most commercial banks in China adopt the scoring method, which is simple and easy to operate, but there are obvious defects in the following aspects: (1) The rating is based on the financial data of the past few years, rather than the prediction of future solvency; The determination of indicators and weights lacks basis; Lack of cash flow analysis and forecast; Industry analysis and research are obviously insufficient.

③ Unable to complete the rating business with high technical requirements. Due to the limitation of talents and technology, commercial banks cannot complete the credit rating of group companies. In recent years, domestic loan fraud incidents are mostly related to group companies. For the rating of such companies, the internal rating of commercial banks in China highlights great limitations.