金融银行信用风险管理外文翻译文献

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商业银行信贷风险管理外文文献翻译中文3000多字

商业银行信贷风险管理外文文献翻译中文3000多字Credit risk management is a XXX business。

financing ns。

payment and settlement。

and other XXX。

credit XXX risk factor for commercial banks。

XXX such as life risk and uncertainty.Effective credit risk management is essential for commercial banks to minimize the impact of credit losses。

This involves identifying and assessing potential risks。

XXX strategies。

XXX。

By doing so。

commercial banks XXX the potential for credit losses.One of the key components of credit risk management iscredit analysis。

This involves evaluating the orthiness of borrowers to determine the likelihood of default。

Credit analysis XXX's financial history。

credit score。

collateral。

XXX credit analysis。

commercial banks can make informed lending ns and minimize the risk of default.Another important aspect of credit risk management is credit XXX can also help commercial banks XXX.In n。

金融体系中英文对照外文翻译文献

金融体系中英文对照外文翻译文献(文档含英文原文和中文翻译)Comparative Financial Systems1 What is a Financial System?The purpose of a ﬁnancial system is to channel funds from agents with surpluses to agents with deﬁcits. In the traditional literature there have be en two approaches to analyzing this process. The ﬁrst is to consider how agents interact through ﬁnancial markets. The second looks at the operation ofﬁnancial intermediaries such as banks and insurance companies. Fifty years ago, the ﬁnancial system co uld be neatly bifurcated in this way. Rich house-holds and large ﬁrms used the equity and bond markets,while less wealthy house-holds and medium and small ﬁrms used banks, insurance companies and other ﬁnancial institutions. Table 1, for example, shows the ownership of corporate equities in 1950. Households owned over 90 percent. By 2000 it can be seen that the situation had changed dramatically.By then households held less than 40 percent, nonbank intermediaries, primarily pension funds and mutual funds, held over 40 percent. This change illustrates why it is no longer possible to consider the role of ﬁnancial markets and ﬁnancial institutions separately. Rather than intermediating directly between households and ﬁrms, ﬁnancial institutions have increasingly come to intermediate between households and markets, on the one hand, and between ﬁrms and markets,on the other. This makes it necessary to consider the ﬁnancial system as anirreducible whole.The notion that a ﬁnancial system transfers resources between households and ﬁrms is, of course, a simpliﬁcation. Governments usually play a significant role in the ﬁnancial system. They are major borrowers, particularlyduring times of war, recession, or when large infrastructure projects are being undertaken. They sometimes also save signiﬁcant amounts of funds. For example, when countries such as Norway and many Middle Eastern States have access to large amounts of natural resources (oil), the government may acquire large trust funds on behalf of the population.In addition to their roles as borrowers or savers, governments usually playa number of other important roles. Central banks typically issue ﬁat money and are extensively involved in the payments system. Financial systems with unregulated markets and intermediaries, such as the US in the late nineteenth century, often experience ﬁnancial crises.The desire to eliminate these crises led many governments to intervene in a signiﬁcant way in the ﬁnancial system. Central banks or some other regulatory authority are charged with regulating the banking system and other intermediaries, such as insurance companies. So in most countries governments play an important role in the operation of ﬁnancialsystems. This intervention means that the political system, which determines the government and its policies, is also relevant for the ﬁnancial system.There are some historical instances where ﬁnancial markets and institutions have operated in the absence of a well-deﬁned legal system, relyinginstead on reputation and other im plicit mechanisms. However, in most ﬁnancial systems the law plays an important role. It determines what kinds ofcontracts are feasible, what kinds of governance mechanisms can be used for corporations, the restrictions that can be placed on securities and so forth. Hence, the legal system is an important component of a ﬁnancial system.A ﬁnancial system is much more than all of this, however. An important pre-requisite of the ability to write contracts and enforce rights of various kinds is a system of accounting. In addition to allowing contracts to be written, an accounting system allows investors to value a company more easily and to assess how much it would be prudent to lend to it. Accounting information is only one type of information (albeit the most important) required by ﬁnancial systems. The incentives to generate and disseminate information are crucial features of a ﬁnancial system.Without signiﬁcant amounts of human capital it will not be possible for any of these components of a ﬁnancial system to operate eﬀectively. Well-trained lawyers, accountants and ﬁnancial professionals such as bankers are crucial for an eﬀective ﬁnancial system, as the experience of Eastern Europe demonstrates.The literature on comparative ﬁnancial systems is at an early stage. Our survey builds on previous overviews by Allen (1993), Allen and Gale (1995) and Thakor (1996). These overviews have focused on two sets of issues.(1)Normative: How eﬀective are diﬀerent types of ﬁnancial system atvarious functions?(2) Positive: What drives the evolution of the ﬁnancial system?The ﬁrst set of issues is considered in Sections 2-6, which focus on issues of investment and saving, growth, risk sharing, information provision and corporate governance, respectively. Section 7 consider s the inﬂuence of law and politics on the ﬁnancial system while Section 8 looks at the role ﬁnancial crises have had in shaping the ﬁnancial system. Section 9 contains concludingremarks.2 Investment and SavingOne of the primary purposes of the ﬁnancial system is to allow savings to be invested in ﬁrms. In a series of important papers, Mayer (1988, 1990) documents how ﬁrms obtained funds and ﬁnanced investment in a number of diﬀerent countries. Table 2 shows the results from the most recent set of studies, based on data from 1970-1989, using Mayer’s methodology. The ﬁgures use data obtained from sources-and-uses-of-funds statements. For France, the data are from Bertero (1994), while for the US, UK, Japan and Germany they are from Corbett and Jenkinson (1996). It can be seen that internal ﬁnance is by far the most important source of funds in all countries.Bank ﬁnance is moderately important in most countries and particularly important in Japan and France. Bond ﬁnance is only important in the US and equity ﬁnance is either unimportant or negative (i.e., shares are being repurchased in aggregate) in all countries. Mayer’s studies and those using his methodology have had an important impact because they have raised the question of how important ﬁnancial marke ts are in terms of providing funds for investment. It seems that, at least in the aggregate, equity markets are unimportant while bond markets are important only in the US. These ﬁndings contrast strongly with theemphasis on equity and bond markets in the traditional ﬁnance literature. Bank ﬁnance is important in all countries,but not as important as internal ﬁnance.Another perspective on how the ﬁnancial system operates is obtained by looking at savings and the holding of ﬁnancial assets. Table 3 shows t he relative importance of banks and markets in the US, UK, Japan, France and Germany. It can be seen that the US is at one extreme and Germany at the other. In the US, banks are relatively unimportant: the ratio of assets to GDP is only 53%, about a third the German ratio of 152%. On the other hand, the US ratio of equity market capitalization to GDP is 82%, three times the German ratio of 24%. Japan and the UK are interesting intermediate cases where banks and markets are both important. In France, banks are important and markets less so. The US and UK are often referred to as market-based systems while Germany, Japan and France are often referred to as bank-based systems. Table 4 shows the total portfolio allocation of assets ultimately owned by the household sector. In the US and UK, equity is a much more important component of household assets than in Japan,Germany and France. For cash and cash equivalents (which includes bank accounts), the reverse is true. Tables 3 and 4 provide an interesting contrast to Table 2. One would expect that, in the long run, household portfolios would reﬂect the ﬁnancing patterns of ﬁrms. Since internal ﬁnance accrues to equity holders, one might expect that equity would be much more important in Japan, France and Germany. There are, of course, diﬀerences in the data sets underlying the diﬀerent tables. For example, household portfolios consist of ﬁnancial assets and exclude privately held ﬁrms, whereas the sources-and-uses-of-funds data include all ﬁrms. Nevertheless, it seem s unlikely that these diﬀerences could cause such huge discrepancies. It is puzzling that these diﬀerent ways of viewing the ﬁnancial system produce such radically diﬀerent results.Another puzzle concerning internal versus external ﬁnance is the diﬀerence between the developed world and emerging countries. Although it is true for the US, UK, Japan, France, Germany and for most other developed countries that internal ﬁnance dominates external ﬁnance, this is not the case for emerging countries. Singh and Hamid (1992) and Singh (1995) show that, for a range of emerging economies, external ﬁnance is more important than internal ﬁnance. Moreover, equity is the most important ﬁnancing instrument and dominates debt. This diﬀerence between the industrialized nations and the emerging countries has so far received little attention. There is a large theoretical literature on the operation of and rationale for internal capital markets. Internal capital markets diﬀer from external capital markets because of asymmetric information, investment incentives, asset speciﬁcity, control rights, transaction costs or incomplete markets There has also been considerable debate on the relationship between liquidity and investment (see, for example, Fazzari, Hubbard and Petersen(1988), Hoshi, Kashyap and Scharfstein (1991))that the lender will not carry out the threat in practice, the incentive eﬀect disappears. Although the lender’s behavior is now ex post optimal, both parties may be worse oﬀ ex ante.The time inconsistency of commitments that are optimal ex ante and suboptimal ex post is typical in contracting problems. The contract commits one to certain courses of action in order to inﬂuence the behavior of the other party. Then once that party’s behavior has been determined, the beneﬁt of the commitment disappears and there is now an incentive to depart from it.Whatever agreements have been entered into are subject to revision because both parties can typically be made better oﬀby “renegotiating” the original agreement. The possibility of renegotiation puts additional restrictions on the kind of contract or agreement that is feasible (we are referring here to the contract or agreement as executed, ratherthan the contract as originally written or conceived) and, to that extent, tends to reduce the welfare of both parties ex ante. Anything that gives the parties a greater power to commit themselves to the terms of the contract will, conversely, be welfare-enhancing.Dewatripont and Maskin (1995) (included as a chapter in this section) have suggested that ﬁnancial markets have an advantage over ﬁnancial intermediaries in maintaining commitments to refuse further funding. If the ﬁrm obtains its funding from the bond market, th en, in the event that it needs additional investment, it will have to go back to the bond market. Because the bonds are widely held, however, the ﬁrm will ﬁnd it diﬃcult to renegotiate with the bond holders. Apart from the transaction costs involved in negotiating with a large number of bond holders, there is a free-rider problem. Each bond holder would like to maintain his original claim over the returns to the project, while allowing the others to renegotiate their claims in order to ﬁnance the additional investment. The free-rider problem, which is often thought of as the curse of cooperative enterprises, turns out to be a virtue in disguise when it comes to maintaining commitments.From a theoretical point of view, there are many ways of maintaining a commitment. Financial institutions may develop a valuable reputation for maintaining commitments. In any one case, it is worth incurring the small cost of a sub-optimal action in order to maintain the value of the reputation. Incomplete information about the borrower’s type may lead to a similar outcome. If default causes the institution to change its beliefs about the defaulter’s type, then it may be optimal to refuse to deal with a ﬁrm after it has defaulted. Institutional strategies such as delegating decisions to agents who are given no discretion to renegotiate may also be an eﬀective commitment device.Several authors have argued that, under certain circumstances, renegotiation is welfare-improving. In that case, the Dewatripont-Maskin argument is turned on its head. Intermediaries that establish long-term relationships with clients may have an advantage over ﬁnancial markets precisely because it is easier for them to renegotiate contracts.The crucial assumption is that contracts are incomplete. Because of the high transaction costs of writing complete contracts, some potentially Pareto-improving contingencies are left out of contracts and securities. This incompleteness of contracts may make renegotiation desirable. The missing contingencies can be replaced by contract adjustments that are negotiated by the parties ex post, after they observe the realization of variables on which the contingencies would have been based. The incomplete contract determines the status quo for the ex post bargaining game (i.e., renegotiation)that determines the ﬁnal outcome.An import ant question in this whole area is “How important are these relationships empirically?” Here there does not seem to be a lot of evidence.As far as the importance of renegotiation in the sense of Dewatripont and Maskin (1995), the work of Asquith, Gertner and Scharfstein (1994) suggests that little renegotiation occurs in the case of ﬁnancially distressed ﬁrms.Conventional wisdom holds that banks are so well secured that they can and do “pull the plug” as soon as a borrower becomes distressed, leaving theunsecured creditors and other claimants holding the bag.Petersen and Rajan (1994) suggest that ﬁrms that have a longer relationship with a bank do have greater access to credit, controlling for a number of features of the borrowers’ history. It is not clea r from their work exactly what lies behind the value of the relationship. For example, the increased access to credit could be an incentive device or it could be the result ofgreater information or the relationship itself could make the borrower more credit worthy. Berger and Udell (1992) ﬁnd that banks smooth loan rates in response to interest rate shocks. Petersen and Rajan (1995) and Berlin and Mester (1997) ﬁnd that smoothing occurs as a ﬁrm’s credit risk changes.Berlin and Mester (1998) ﬁnd that loan rate smoothing is associated with lower bank proﬁts. They argue that this suggests the smoothing does not arise as part of an optimal relationship.This section has pointed to a number of issues for future research.• What is the relationship between th e sources of funds for investment,as revealed by Mayer (1988, 1990), and the portfolio choices of investorsand institutions? The answer to this question may shed some light onthe relative importance of external and internal finance.• Why are financing patterns so different in developing and developedeconomies?• What is the empirical importance of long-term relationships? Is renegotiationimportant is it a good thing or a bad thing?• Do long-term relationships constitute an important advantage of bankbasedsystems over market-based systems?金融体系的比较1、什么是金融体系？一个金融系统的目的（作用）是将资金从盈余者（机构）向短缺者（机构）转移（输送）。

金融风险管理外文翻译文献

金融风险管理外文翻译文献(文档含英文原文和中文翻译)原文：Enterprise Risk Management in InsuranceEnterprise Risk Management (hereinafter referred as “ERM”) interests a wide range of professions (e.g., actuaries, corporate financial managers, underwriters, accountants,and internal auditors), however, current ERM solutions often do not cover all risks because they are motivated by the core professional ethics and principles of these professions who design and administer them. In a typical insurance company all such professions work as a group to achieve the overriding corporate objectives.Risk can be defined as factors which prevent an organization in achieving its objectives and risks affect organizations holistically. The management of risk in isolation often misses its big picture. It is argued here that a holistic management of risk is logical and is the ultimate destination of all general management activities.Moreover, risk management should not be a separate function of the business process;rather, managing downside risk and taking the opportunities from upside risk should be thekey management goals. Consequently, ERM is believed as an approach to risk management, which provides a common understanding across the multidisciplinary groups of people of the organization. ERM should be proactive and its focus should be on the organizations future. Organizations often struggle to see and understand the full risk spectrum to which they are exposed and as a result they may fail to identify the most vulnerable areas of the business. The effective management of risk is truly an interdisciplinary exercise grounded on a holistic framework.Whatever name this new type of risk management is given (the literature refers to it by diverse names, such as Enterprise Risk Management, Strategic Risk Management, and Holistic Risk Management) the ultimate focus is management of all significant risks faced by the organization. Risk is an integral part of each and every action of the organization in the sense that an organization is a basket of contracts associated with risk (in terms of losses and opportunities). The idea of ERM is simple and logical, but implementation is difficult. This is because its involvement with a wide stakeholder community, which in turn involves groups from different disciplines with different beliefs and understandings. Indeed, ERM needs theories (which are the interest of academics) but a grand theory of ERM (which invariably involves an interdisciplinary concept) is far from having been achieved.Consequently, for practical proposes, what is needed is the development of a framework(a set of competent theories) and one of the key challenges of this thesis is to establish the key features of such a framework to promote the practice of ERM. Multidisciplinary Views of RiskThe objective of the research is to study the ERM of insurance companies. In line with this it is designed to investigate what is happening practically in the insurance industry at the current time in the name of ERM. The intention is to minimize the gap between the two communities (i.e., academics and practitioners) in order to contribute to the literature of risk management.In recent years ERM has emerged as a topic for discussion in the financial community,in particular, the banks and insurance sectors. Professional organizations have published research reports on ERM. Consulting firms conducted extensive studies and surveys on the topic to support their clients. Rating agencies included theERM concept in their rating criteria. Regulators focused more on the risk management capability of the financial organizations. Academics are slowly responding on the management of risk in a holistic framework following the initiatives of practitioners.The central idea is to bring the organization close to the market economy. Nevertheless,everybody is pushing ERM within the scope of their core professional understanding.The focus of ERM is to manage all risks in a holistic framework whatever the source and nature. There remains a strong ground of knowledge in managing risk on an isolated basis in several academic disciplines (e.g., economics, finance, psychology,sociology, etc.). But little has been done to take a holistic approach of risk beyond disciplinary silos. Moreover, the theoretical understanding of the holistic (i.e., multidisciplinary)properties of risk is still unknown. Consequently, there remains a lack of understanding in terms of a common and interdisciplinary language for ERM.Risk in FinanceIn finance, risky options involve monetary outcomes with explicit probabilities and they are evaluated in terms of their expected value and their riskiness. The traditional approach to risk in finance literature is based on a mean-variance framework of portfolio theory, i.e., selection and diversification. The idea of risk in finance is understood within the scope of systematic (non-diversifiable) risk and unsystematic (diversifiable)risk. It is recognized in finance that systematic risk is positively correlated with the rate of return. In addition, systematic risk is a non-increasing function of a firm’s growth in terms of earnings. Another established concern in finance is default risk and it is argued that the performance of the firm is linked to the firm’s default risk. A large part of finance literature deals with severa l techniques of measuring risks of firms’ investment portfolios (e.g., standard deviation, beta, VaR, etc.). In addition to the portfolio theory, Capital Asset Pricing Model (CAPM) was discovered in finance to price risky assets on the perfect capital markets. Finally, derivative markets grew tremendously with the recognition of option pricing theory.Risk in EconomicsRisk in economics is understood within two separate (independent) categories,i.e.,endogenous (controllable) risk and background (uncontrollable) risk. It is recognized that economic decisions are made under uncertainty in the presence of multiple risks.Expected Utility Theory argues that peoples’ risk attitude on the size of risk (small,medium, large) is derived from the utility-of-wealth function, where the utilities of outcomes are weighted by their probabilities. Economists argue that people are risk averse (neutral) when the size of the risks is large (small).Prospect theory provides a descriptive analysis of choice under risk. In economics, the concept of risk-bearing preferences of agents for independent risks was described under the notion of “ standard risk aversion.” Most of the economic research on risk is originated on the study of decision making behavior on lotteries and other gambles. Risk in PsychologyWhile economics assumes an individual’s risk preference is a function of probabilistic beliefs, psychology explores how human judgment and behavior systematically forms such beliefs. Psychology talks about the risk taking behavior (risk preferences).It looks for the patterns of human reactions to the context, reference point,mental categories and associations that influence how people make decisions.The psychological approach to risk draws upon the notion of loss aversion that manife sts itself in the related notion of “regret.” According to Willett; “risk affects economic activity through the psychological influence of uncertainty.” Managers’ attitude of risk taking is often described from the psychological point of view in terms of feelings.Psychologists argue that risk, as a multidisciplinary concept, can not be reduced meaningfully by a single quantitative treatment. Consequently, managers tend to utilize an array of risk measurers to assist them in the decision making process under uncertainty. Risk perception plays a central role in the psychological research on risk, where the key concern is how people perceive risk and how it differs to the actual outcome. Nevertheless, the psychological research on risk provides fundamental knowledge of how emotions are linked to decision making.Risk in SociologyIn sociology risk is a socially constructed phenomenon (i.e., a social problem) and defined as a strategy referring to instrumental rationality. The sociologicalliterature on risk was originated from anthropology and psychology is dominated by two central concepts. First, risk and culture and second, risk society. The negative consequences of unwanted events (i.e., natural/chemical disasters, food safety) are the key focus of sociological researches on risk. From a sociological perspective entrepreneurs remain liable for the risk of the society and responsible to share it in proportion to their respective contributions. Practically, the responsibilities are imposed and actions are monitored by state regulators and supervisors.Nevertheless, identification of a socially acceptable threshold of risk is a key challenge of many sociological researches on risk.Convergence of Multidisciplinary Views of RiskDifferent disciplinary views of risk are obvious. Whereas, economics and finance study risk by examining the distribution of corporate returns, psychology and sociology interpret risk in terms of its behavioral components. Moreover, economists focus on the economic (i.e., commercial) value of investments in a risky situation.In contrast, sociologists argue on the moral value (i.e., sacrifice) on the risk related activities of the firm. In addition, sociologists’ criticism of economists’concern of risk is that although they rely on risk, time, and preferences while describing the issues related to risk taking, they often miss out their interrelationships(i.e., narrow perspective). Interestingly, there appears some convergence of economics and psychology in the literature of economic psychology. The intention is to include the traditional economic model of individuals’ formal rational action in the understanding of the way they actually think and behave (i.e., irrationality).In addition, behavioral finance is seen as a growing discipline with the origin of economics and psychology. In contrast to efficient market hypothesis behaviour finance provides descriptive models in making judgment under uncertainty.The origin of this convergence was due to the discovery of the prospect theory in the fulfillment of the shortcomings of von Neumann-Morgenstern’s utility theory for providing reasons of human (irrational) behavior under uncertainty (e.g., arbitrage).Although, the overriding enquiry of disciplines is the estimation of risk, they comparing and reducing into a common metric of many types of risks are there ultimate difficulty. The key conclusion of the above analysis suggests that there existoverlaps on the disciplinary views of risk and their interrelations are emerging with the progress of risk research. In particular, the central idea of ERM is to obscure the hidden dependencies of risk beyond disciplinary silos.Insurance Industry PracticeThe practice of ERM in the insurance industry has been drawn from the author’s PhD research completed in 2006. The initiatives of four major global European insurers(hereinafter referred as “CASES”) were studied for this purpose. Out of these four insurers one is a reinsurer and the remaining three are primary insurers. They were at various stages of designing and implementing ERM. A total of fifty-one face-to-face and telephone interviews were conducted with key personnel of the CASES in between the end of 2004 and the beginning of 2006. The comparative analysis (compare-and-contrast) technique was used to analyze the data and they were discussed with several industry and academic experts for the purpose of validation. Thereafter,a conceptual model of ERM was developed from the findings of the data.Findings based on the data are arranged under five dimensions. They are understanding;evaluation; structure; challenges, and performance of ERM. Understanding of ERMIt was found that the key distinction in various perceptions of ERM remains between risk measurement and risk management. Interestingly, tools and processes are found complimentary. In essence, meaning that a tool can not run without a process and vice versa. It is found that the people who work with numbers (e.g.,actuaries, finance people, etc.) are involved in the risk modeling and management(mostly concerned with the financial and core insurance risks) and tend to believe ERM is a tool. On the other hand internal auditors, company secretaries, and operational managers; whose job is related to the human, system and compliance related issues of risk are more likely to see ERM as a process.ERM: A ProcessWithin the understanding of ERM as a process, four key concepts were found. They are harmonization, standardization, integration and centralization. In fact, they are linked to the concept of top-down and bottom-up approaches of ERM.The analysis found four key concepts of ERM. They are harmonization,standardization,integration and centralization (in decreasing order of importance). It was also found that a unique understanding of ERM does not exist within the CASES, rather ERM is seen as a combination of the four concepts and they often overlap. It is revealed that an understanding of these four concepts including their linkages is essential for designing an optimal ERM system.Linkages Amongst the Four ConceptsAlthough harmonization and standardization are seen apparently similar respondents view them differently. Whereas, harmonization allows choices between alternatives,standardization provides no flexibility. Effectively, harmonization offers a range of identical alternatives, out of which one or more can be adopted depending on the given circumstances. Although standardization does not offer such flexibility,it was found as an essential technique of ERM. Whilst harmonization accepts existing divergence to bring a state of comparability, standardization does not necessarily consider existing conventions and definitions. It focuses on a common standard, (a “top-down” approach). Indeed, integration of competent policies and processes,models, and data (either for management use, compliance and reporting) are not possible for global insurers without harmonizing and standardizing them. Hence, the research establishes that a sequence (i.e., harmonization, standardization, integration,and then centralization) is to be maintained when ERM is being developed in practice (from an operational perspective). Above all, the process is found important to achieve a diversified risk culture across the organization to allocate risk management responsibilities to risk owners and risk takers.ERM: A ToolViewed as a tool, ERM encompasses procedures and techniques to model and measure the portfolio of (quantifiable) enterprise risk from insurers’ core disciplinary perspective. The objective is to measure a level of (risk adjusted) capital(i.e., economic capital) and thereafter allocation of capital. In this perspective ERM is thought as a sophisticated version of insurers’ asset-liability management.Most often, extreme and emerging risks, which may bring the organization down,are taken into consideration. Ideally, the procedure of calculating economic capital is closely linked to the market volatility. Moreover, the objective is clear, i.e., meetingthe expectation of shareholders. Consequently, there remains less scope to capture the subjectivity associated with enterprise risks.ERM: An ApproachIn contrast to process and tool, ERM is also found as an approach of managing the entire business from a strategic point of view. Since, risk is so deeply rooted in the insurance business, it is difficult to separate risk from the functions of insurance companies. It is argued that a properly designed ERM infrastructure should align risk to achieve strategic goals. Alternatively, application of an ERM approach of managing business is found central to the value creation of insurance companies.In the study, ERM is believed as an approach of changing the culture of the organization in both marketing and strategic management issues in terms of innovating and pricing products, selecting profitable markets, distributing products, targeting customers and ratings, and thus formulating appropriate corporate strategies. In this holistic approach various strategic, financial and operational concerns are seen integrated to consider all risks across the organization.It is seen that as a process, ERM takes an inductive approach to explore the pitfalls (challenges) of achieving corporate objectives for broader audience (i.e.,stakeholders) emphasizing more on moral and ethical issues. In contrast, as a tool,it takes a deductive approach to meet specific corporate objectives for selected audience(i.e., shareholders) by concentrating more on monitory (financial) outcomes.Clearly, the approaches are complimentary and have overlapping elements. 作者：M Acharyya译文：保险业对企业风险管理的实证研究企业风险管理涉及各种行业(如保险精算师、公司财政经理、保险商、会计和内部审计员)，当前企业风险管理解决方案往往不能涵盖所有的风险，因为这些方案取决于决策者和执行则的专业道德和原则。

商业银行信贷风险管理外文翻译

文献信息：文献标题：Credit Risk Management Strategies and Their Impact on Performance of Commercial Banks in Kenya（信贷风险管理策略及其对肯尼亚商业银行绩效的影响）国外作者：Samuel Warui Mutua，Muoni Gekara文献出处：《Imperial Journal of Interdisciplinary Research》,2017, 3(4):1896-1904字数统计：英文2891单词，15678字符；中文4915汉字外文文献：Credit Risk Management Strategies and Their Impact on Performance of Commercial Banks in Kenya Abstract Credit risk management strategies are amongst the most critical factors to consider for any financial institution involved in any lending activity. Financial institutions have often find themselves making decisions between lending to potential borrowers thus effectively growing their balance sheets and effectively increasing their returns and being cautious in lending to caution themselves against any potential losses. Specifically, the research sought to examine credit risk management strategies and their impact on performance of commercial banks in Kenya. The research was guided by the liquidity theory of credit, portfolio theory, credit risk theory and the tax theory of credit.The research was based on a descriptive design which involves describing the current state of affairs by use of data collected through questionnaires and interviews. The research was focused on selected Tier III commercial banks in Kenya namely Consolidated Bank, African Banking Corporation and Credit Bank with reference to the loans department. The sampled population consists of 62 staff members from loans department of Consolidated Bank, African Banking Corporation and CreditBank. Primary data was collectedthrough the use of closed ended questionnaires, pick and drop procedure was used to collect data through use of the registered offices of the targeted loans departments of the target banks. Data analysis was done both quantitatively using tables and charts; this was then summarized, coded, tabulated and analyzed using both descriptive statistics and measures of variability with aid of SPSS package. Tables and graphs were used to present the data collected for ease of understanding and analysis. From the findings, the study concludes that credit risk management strategies including credit risk rating risks, credit approval risks, portfolio management risks and security perfection risks positively affect performance of commercial banks in Kenya.Key words: Credit risk management practices, commercial banks1.IntroductionCredit risk refers to the potential for loss as a resultof failure of counter party to meet their obligations of paying the financial institution according to the agreed terms. Credit exposures may arise from both banking and trading books. Management of credit risks requires a framework of well set out policies and procedures covering measurement and management of the credit risk (Barth et al, 2004).While financial institutions have faced difficulties over the years for a multitude of reasons, the major cause of serious banking problems continues to be directly related to lax credit standards for borrowers and counterparties, poor portfolio risk management, or a lack of attention to changes in economic or other circumstances that can lead to a deterioration in the credit standing of a bank’s counterparties. This experience is common in both the developed and developing countries.For most banks, loans are the largest and most obvious source of credit risk; however, other sources of credit risk exist throughout the activities of a bank,including in the banking book and in the trading book, and both on and off the balance sheet. Banks are increasingly facing credit risk (or counterparty risk) in various financial instruments other thanloans, including acceptances, interbank transactions, trade financing, foreign exchange transactions, financial futures, swaps,bonds, equities, options, and in the extension of commitments and guarantees, and the settlement of transactions.Each bank should develop a credit risk strategy or plan that establishes the objectives guiding thebank’s credit-granting activities and adopt the necessary policies and procedures for conducting such activities. The credit risk strategy, as well as significant credit risk policies, should be approved and periodically (at least annually) reviewed by the board of directors. The board needs to recognize thatthe strategy and policies must cover the many activities of the bank in which credit exposure is a significant risk (Haron et al, 2007).Credit Management is a financial management aspect that includes credit underwriting that encompasses analysis, approval, security perfection, portfolio management and debt recovery. Nzotta (2004) indicated that credit management directly influences the success or failures of financial institution involved in lending activities. He indicated that on the hindsight of lending being directly proportionalto the quantum of deposits received from the public, any unwise credit underwriting would translateto loss of depositors’ funds and losses to the financial institutions thereof.According to a report by Earnest and Young of 2013 on the banking environment in East Africa, it is reported that banks in Kenya, Tanzania, Uganda and Rwanda recorded growth rates in asset book of 16%, 14%, 13% and 12% respectively. This was on the advent of introduction of credit bureaus that was expected to improve on credit underwriting by improving decision making by 89% and effectively help reduce Non Performing portfolios across the board by 94%. Between the year 2009 and 2013, banks in Tanzania grew their CAGR by 17.5% with loans and advances outpacing overall asset growth which grew by 22.5% over the same period. In Uganda, the CAGR of banks grew by 13% whilst the growth in Rwanda was 12% in an economy that grew by 4.6%. In the period under review high loan provisioning occasioned by aggressive pursuit by various players to grow their balance sheets withouta simultaneous enhanced credit underwriting amongst other factors was highlighted as a reason high provisions were witnessed.Josiah Aduda and James Gitonga (2011) carried out a research on the relationship between credit risk management and profitability among the commercial banks in Kenya. They found out that a strong relationship does exist between credit management and profitability and that most banks held to this belief. Gatuhu (2011) conducted a research on the effect of financial performance of credit management on the financial performance of microfinance institutions in Kenya. Gatuhu found that there existed a strong relationship between credit appraisal of microfinance institutions, credit risk control and collection policy and the overall performance of microfinance institutions in Kenya. The period commencing second half of the year 2015 to the first half of 2016 witnessed particularly difficult times for the banking industry in Kenya with 3 out the then existing 43 commercial banks going under or being placed under statutory management. These were influenced by in one way directly or indirectly to issues revolving around weak credit management strategies.2.Statement of the ProblemThe main objective of any institution involved in money lending is to ensure that a healthy return is realized adequate to cover for all the risks assumedin addition to covering the foregone time value for money. In trying to attain this objective, prudence must be exercised to en sure that unnecessaryrisk isn’t taken that would most probably lead to unprecedented losses. It is for this reason that various institutions involved in money lending are guided by various frameworks to ensure care is exercised in making such decisions.There is an extensive literature on the managementof credit risk in commercial banks. Kealhofer (2003) did a research study on risk-adjusted performance measures in commercial banks. The measures, however, focus on risk-return trade-off, i.e. measuring the risk inherent in each activity and charge it accordingly for the capital required to support it. Greuning and Bratanovic (2003), studied sound credit granting process; maintaining an appropriate credit administration that involves monitoring process as well as adequate controls over credit risk.Clear established process for approving new credits and extending the existingcredits has been observed to be very important while managing credit risk (Heffernan, 2003). Mwirigi, (2006) didan assessment of the credit risk management techniques adopted by various MFIs in Kenya and ascertained that a considerable number of them had credit policies to enable them make informed credit decisions that stroke a balance between businessandrisk perspectives. Ndwiga, (2010) and Chege, (2010) both did a research to ascertain the relationship between credit risk management and the financial performance of MFIs in Kenya.There is no known study that has been done on strategic credit policies for risk management, thus knowledge gap. This study aims at establishing the credit risk management used by commercial banks and how they affect performance of the commercial banks. This research study is motivated to bridge the gap by investigating credit risk management strategies employed by commercial banks, especially Tier III banks in Kenya and how this impacts on their financial performance. In the commercial banks, management of credit risk has caused bank losses in developing countries, including Kenya. Effective credit risk management system minimizes the credit risk, hence the level of loan losses.3.Theoretical Review3.1.Liquidity Theory of CreditThis theory, first proposed by (Emery, 2009), proposes that credit rationed firms use more trade credit than those with normal access to financial institutions. The central point of this notion is that when a firm is financially inhibited the offer of trade credit can make up for the decline of credit offer from lending institutions.Inaccordwith thisview,those firms presenting good liquidity or better access to capital markets can finance those that are credit rationed. Several methodologies have tried to obtain empirical confirmation in order to support this assumption. Nielsen (2012), using small firms as proxy for credit rationed firms, firms find that when there is liquidity tightening in the economy, to ensure their sustainability, they are obligated to advance credit terms to their customers. As financially liberal firms are less likely to seek trade credit terms and more likely toextend the same, a negative relation between a buyers’ access to other sources of financing and trade credit is expected. (Petersen & Rajan, 2007) obtained evidence supporting this negative relation.3.2.Portfolio TheoryPortfolio theory of investment tries to optimize the expected portfolio return for a given proportion of portfolio risk or equivalently decrease the risk for a given level of anticipated return, by carefully choosing the mixed proportions of several assets. Portfolio theory is extensively used in practice in the financial sector and several of its inventors won a Nobel Prize for the same. In modern years the basic portfolio theory has been widely criticized by fields such as behavioral economics (Markowitz, 1952). Portfolio theory was devel oped in 1950’s all through to the early 1970’s and was considered a vital progression in the mathematical modeling of finance. Many theoretical and practical criticisms have since been developed against the same. This include the fact that financial returns do not follow a Gaussian distribution or indeed any symmetric distribution and those correlations between asset classes (Sproul, 1998)3.3.Tax Theory of CreditThe rationale of whether or not to accept a trade credit is based on the ability to access other sources of finances. A buyer is obliged to compare different financing options to find out which will be the most economically viable for them in making cost savings. In any business deal, payment may be on the spot or deferred to a date in the future, in which case a deferred cost element is attached to it in the form of interest. Thus, to find the best sources of funding, the buyer ought to investigate the real cost of borrowing. (Brick and Fung, 1984) suggest that, the tax effect should be considered in order to compare the trade credit cost with the cost of other financing options. The main reason for this is that if sellers and buyers are in different tax brackets, they have different costs of borrowing as their interests are tax allowable. The autho rs’ hypothesis is that; businesses in a high tax bracket tend to advance more trade credit thanthosein low brackets. Subsequently, only buyers in a low tax bracket than the seller will accept credit terms, since those in a higher tax brackets couldborrow more cheaply and directly from a financial organization. Another assumption is that businesses associated with a given sector and placed in a tax bracket below the specific sector average; cannot benefit from offering trade credit. Thus, (Brick and Fung 1984) propose that firms can’t use and offer trade credit.3.4.Credit Risk TheoryUntil barely the 1970s’, Credit risk had not been widely studied, although people have been facing credit risk ever since the very early times. Before 1974, early literature on credit risk used traditional actuarial methods of assessing the same, whosemajor challenge lies in their extensive dependence on historical data. Up to now there are three quantitative approaches of analyzing credit risk: structural approach, reduced form appraisal and incomplete information approach (Crosbie et al, 2003). Melton 1974, presented the credit risk theory else called the structural theory; which said the default event originates from a firm’s asset development displayed by a diffusion process with constant parameters.Such models are ordinarily defined as ‘Structural model’ and based on variables connected to a particular issuer. An evolution of this grouping is characterized by asset of models where the loss provisional on default is exogenously precise. In these models, the nonpayment can happenthroughout all the life of a corporate bond and not only at maturity (Longstaff and Schwartz, 1995).4.MethodologyThe study used descriptive research designAccording to Oso and Onen (2009) prior to carrying out the study there is need to determine the respondents, the data collection procedures, tools and instruments which would aid in data collection. According to Kothari, 2007. It involves describing the current state of affairs by use of data collected through questionnaires and interviews. Descriptive research design is qualitative whose main purpose is description of the state of affairs as it exists.Descriptive research seeks to establish factors associated with certain occurrences, outcomes, conditions or types of behavior. A complete set of people, events or objects from which the study seeks to generalize the results is known aspopulation (Mugenda, 2009). The study will concentrate on the 20 Tier III Commercial Banks Licensed by Central Bank of Kenya.Stratified sampling technique will be used in the collectionofsampleswherethe20TierIIIcommercial banks will be stratified into three categories which are; Government owned, Local Investors owned and Foreign Investor owned, further into male and female, also a mix of Experienced Managers, Senior Officers and Junior Credit officers, out of which 62 Employees will be selected to participate in the study. Purposive sampling will also be used so as to include Heads of Credit Units and also ensure all key credit operational areas are covered in the sample.In this study, a population consists of 62 staff from loans department of Consolidated Bank, African Banking Corporation and Credit Bank.The main tool for data collection in this study was a questionnaire. A closed ended questionnaire was preferred. The questions were designed based on Likert scale which allowed the respondentsto express their view on the study variables. According to Kothari (2007) open - ended questions allow respondents to give answers in their own way, whilst Closed - ended questions or forced choice questions provide an assortment of alternative answers from which the respondent is constrained to choose.The data collected was analyzed and interpretations drawn based on the analysis. Descriptive statistics was used in the analysis of quantitative data. The statistical tool for the analysis was the statistical package for the social sciences (SPSS) Version 20, which was used to analyze the data whereby the questionnaires would be coded and frequency distributions and percentages run.5.ConclusionsThey have a positive significant relationship on performance of commercial banksin Kenya. Sound credit rating mechanism is perceived as a great contributor towards the performance of credit facilities in commercial banks. This by and large affects the performance of the banks as a whole since the banks’ profitability are hinged on its credit services. There needs to be frequent credit trainings to improve onstaff competencies to ensure they are always kept abreast with developments in the industry to ensure appropriate credit underwriting is always done, this will inturn ensure, proper segmentation and accounts review is also done with an aim to ensure the credit element in a bank is well covered.There is need for inclusion of collateral appraisal. Since the credit approval risks are in turn influenced by therisk appetite of various commercial banks, a matrix acceptable to all banks based on factors such as capital strength and customer bases should be developed to ensure that an institution doesn’t necessarily take up risks that is too high that might impairably damage their overall financial strength and health should any unprecedented shocks materialize due to the risks taken by a bank.There is however need to review the provision requirementsas detailed by the Prudential Guidelines (PGs) to realign the same with the evolving banking environment which has seen a significant shift since the PGs were last reviewed. An all-inclusive forumto realign the provision requirement should be held between all the relevant stakeholders including the regulator (CBK) and the Commercial banks to arrive at ideal reviewed rates in line with the evolved banking environment.There is however need for Tier III banks to be more risk averse to unsecured lending and opt for asset backed lending. This is more so influencedby the fact that their balance sheets are relatively smaller which makes them unable to withstand shocks that may emanate from provisioning that would be occasionedby higherrequirements toprovision forthe unsecured borrowings or weakly secured exposures.中文译文：信贷风险管理策略及其对肯尼亚商业银行绩效的影响摘要信用风险管理策略是所有参与贷款活动的金融机构最重要的考虑因素之一。

银行信用风险中英文对照外文翻译文献

中英文对照外文翻译文献(文档含英文原文和中文翻译)估计技术和规模的希腊商业银行效率：信用风险、资产负债表的活动和国际业务的影响11.介绍希腊银行业经历了近几年重大的结构调整。

重要的结构性、政策和环境的变化经常强调的学者和从业人员有欧盟单一市场的建立，欧元的介绍，国际化的竞争、利率自由化、放松管制和最近的兼并和收购浪潮。

希腊的银行业也经历了相当大的改善，通信和计算技术，因为银行有扩张和现代化其分销网络，其中除了传统的分支机构和自动取款机，现在包括网上银行等替代分销渠道。

作为希腊银行（2004 年）的年度报告的重点，希腊银行亦在升级其信用风险测量与管理系统，通过引入信用评分和概率默认模型近年来采取的主要步骤。

此外，他们扩展他们的产品/服务组合，包括保险、经纪业务和资产管理等活动，同时也增加了他们的资产负债表操作和非利息收入。

最后，专注于巴尔干地区（如阿尔巴尼亚、保加利亚、前南斯拉夫马其顿共和国、罗马尼亚、塞尔维亚）的更广泛市场的全球化增加的趋势已添加到希腊银行在塞浦路斯和美国以前有限的国际活动。

在国外经营的子公司的业绩预计将有父的银行，从而对未来的决定为进一步国际化的尝试对性能的影响。

本研究的目的是要运用数据包络分析（DEA）和重新效率的希腊银行部门，同时考虑到几个以上讨论的问题进行调查。

我们因此区分我们的论文从以前的希腊银行产业重点并在几个方面，下面讨论添加的见解。

首先，我们第一次对效率的希腊银行的信用风险的影响通过检查其中包括贷款损失准备金作为附加输入Charnes et al.(1990 年)、德雷克（2001 年）、德雷克和大厅(2003 年)，和德雷克等人（2006 年）。

作为美斯特(1996) 点出"除非质量和风险控制的一个人也许会很容易误判一家银行的水平的低效；例如精打细算的银行信用评价或生产过高风险的贷款可能会被贴上标签一样高效，当相比银行花资源，以确保它们的贷款有较高的质量"(p.1026)。

金融银行信用风险论文中英文资料外文翻译文献

中英文资料外文翻译文献Managing Credit Risks with Knowledge Management forFinancial BanksAbstract-Nowadays,financial banks are operating in a knowledge society and there are more and more credit risks breaking out in banks.So,this paper first discusses the implications of knowledge and knowledge management, and then analyzes credit risks of financial banks with knowledge management. Finally, the paper studies ways for banks to manage credit risks with knowledge management. With the application of knowledge management in financial banks, customers will acquire better service and banks will acquire more rewards.Index Terms–knowledge management; credit risk; risk management; incentive mechanism; financial banksI.INTRODUCTIONNowadays,banks are operating i n a“knowledge society”.So, what is knowledge? Davenport(1996)[1]thinks knowledge is professional intellect, such as know-what, know-how, know-why, and self-motivated creativity, or experience, concepts, values, beliefs and ways of working that can be shared and communicated. The awareness of the importance of knowledge results in the critical issue of “knowledge management”. So, what is knowledge management? According to Malhothra(2001)[2], knowledge management(KM)caters to the critical issues of organizational adaptation, survival and competence in face of increasingly discontinuous environmental change. Essentially it embodies organizational processes that seek synergistic combination of data and information processing capacity of information technologies and the creative and innovative capacity of human beings. Through the processes of creating,sustaining, applying, sharing and renewing knowledge, we can enhance organizational performance and create value.Many dissertations have studied knowledge managementapplications in some special fields. Aybübe Aurum(2004)[3] analyzes knowledge management in software engineering and D.J.Harvey＆R.Holdsworth(2005)[4]study knowledge management in the aerospace industry. Li Yang(2007)[5] studies knowledge management in information-based education and Jayasundara＆Chaminda Chiran(2008)[6] review the prevailing literature on knowledge management in banking industries. Liang ping and Wu Kebao(2010)[7]study the incentive mechanism of knowledge management inBanking.There are also many papers about risks analysis and risks management. Before the 1980s, the dominant mathematical theory of risks analysis was to describe a pair of random vectors.But,the simplification assumptions and methods used by classical competing risks analysis caused controversy and criticism.Starting around the 1980s, an alternative formulation of risk analysis was developed,with the hope to better resolve the issues of failure dependency and distribution identifiability. The new formulation is univariate risk analysis.According to Crowder(2001)[8], David＆Moeschberger(1978)[9]and Hougaard(2000)[10],univariate survival risk analysis has been dominantly, which is based on the i.i.d assumptions(independent and identically distributed) or, at least, based on the independent failure assumption.Distribution-free regression modeling allows one to investigate the influences of multiple covariates on the failure, and it relaxes the assumption of identical failure distribution and to some extent, it also relaxes the single failure risk restriction. However, the independent failures as well as single failure events are still assumed in the univariate survival analysis. Of course,these deficiencies do not invalidate univariate analysis, and indeed, in many applications, those assumptions are realistically valid.Based on the above mentioned studies, Ma and Krings(2008a, 2008b)[11]discuss the relationship and difference of univariate and multivariate analysis in calculating risks.As for the papers on managing the risks in banks, Lawrence J.White(2008)[12]studies the risks of financial innovations and takes out some countermeasures to regulate financial innovations. Shao Baiquan(2010)[13]studies the ways to manage the risks in banks.From the above papers, we can see that few scholars have studied the way to manage credit risks with knowledge management. So this paper will discuss using knowledgemanagement to manage credit risks for financial banks.This paper is organized as follows: SectionⅠis introduction. SectionⅡanalyzes credit risks in banks with knowledge management. SectionⅢstudies ways for banks to manage credit risks with knowledge management. SectionⅣconcludes.II.ANALYZING CREDIT RISKS IN BANKS WITHKNOWLEDGE MANAGEMENTA.Implication of Credit RiskCredit ris k is the risk of loss due to a debtor’s non-payment of a loan or other line of credit, which may be the principal or interest or both.Because there are many types of loans and counterparties-from individuals to sovereign governments-and many different types of obligations-from auto loans to derivatives transactions-credit risk may take many forms.Credit risk is common in our daily life and we can not cover it completely,for example,the American subprime lending crisis is caused by credit risk,which is that the poor lenders do not pay principal and interest back to the banks and the banks do not pay the investors who buy the securities based on the loans.From the example,we can find that there are still credit risks,though banks have developed many financial innovations to manage risks.B.Sharing KnowledgeKnowledge in banks includes tacit knowledge and explicit knowledge,which is scattered in different fields.For example, the information about the customers’income, asset and credit is controlled by different departments and different staffs and the information can’t be communicated with others. So it is necessary for banks to set up a whole system to communicate and share the information and knowledge to manage the risks.C.Setting up Incentive Mechanism and Encouraging Knowledge InnovationThe warning mechanism of credit risks depends on how bank’s staffs use the knowledge of customers and how the staffs use the knowledge creatively.The abilities of staffs to innovate depend on the incentive mechanism in banks,so, banks should take out incentive mechanism to urge staffs to learn more knowledge and work creatively to manage credit risks.We can show the incentive mechanism as Fig.1: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.III.MANAGING CREDIT RISKS IN BANKS WITH KNOWLEDGEMANAGEMENTThere are four blocks in managing credit risks with knowledge management.We can show them in Fig.2:Fig.2 The blocks of managing credit risksA.Distinguishing Credit RiskDistinguishing 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 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 RiskAfter 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.Table Ⅰshows the credit ratings of Standard ＆Poor’s.TABLE ISTANDARD ＆POOR’S CREDITT RATINGSAfter 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 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 RiskAfter 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 loanswith 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 backA 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 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.CONCLUSIONIn 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 o f 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 cust omers’credit risks and gain sustainable profits.ACKNOWLEDGMENTIt is financed by the humanities and social sciences project of the Ministry of Educationof China(NO.06JC790032).REFERENCES[1]Davenport,T.H.et al,“Improving knowledge work processes,”Sl oan Management Review,MIT,USA,1996,V ol.38,pp.53-65.[2]Malhothra,“Knowledge management for the new world of business,”New York BRINT Institute,2001,lkm/whatis.htm.[3]Aybübe Aurum,“Knowledge management in software engineering education,”Proceedings of the IEEE International Conference on Advanced Learning Technologies,2004,pp.370-374.[4]D.J.Harvey＆R.Holdsworth,“Knowledge management in the aerospace industry,”Proceedings of the IEEE International Professional Communication Conference,2005,pp.237-243.[5]Li Yang,“Thinking about knowledge management applications in information-based education,”IEEE International Conference on Advanced Learning Technologies,2007,pp.27-33.[6]Jayasundara＆Chaminda Chiran,“Knowledge management in banking industries:uses and opportunities,”Journal of the University Librarians Association of Sri Lanka,2008,V ol.12,pp.68-84.[7]Liang Ping,Wu Kebao,“Knowledge management in banking,”The Conference on Engineering and Business Management,2010, pp.4719-4722.[8]Crowder,M.J.Classical Competing Risks,British:Chapman&Hall, 2001,pp.200.[9]David,H.A.&M.L.Moeschberger,The Theory of Competing Risks, Scotland,Macmillan Publishing,1978,pp.103.金融银行信用风险管理与知识管理摘要：目前，金融银行经营在一个知识型社会中，而且越来越多的信用风险在在银行中爆发。

银行风险管理外文文献及翻译

“RISK MANAGEMENT IN COMMERCIAL BANKS”(A CASE STUDY OF PUBLIC AND PRIVATE SECTOR BANKS) - ABSTRACT ONLY1. PREAMBLE:1.1 Risk Management:The future of banking will undoubtedly rest on risk management dynamics. Only those banks thathave efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. Credit risk is the oldest and biggest risk that bank, by virtueof its very nature of business, inherits. This has however, acquired a greater significance in the recentpast for various reasons. Foremost among them is the wind of economic liberalization that is blowing across the globe. India is no exception to this swing towards market driven economy. Competition from within and outside the country has intensified. This has resulted in multiplicity of risks both in numberand volume resulting in volatile markets. A precursor to successful management of credit risk is a clear understanding about risks involved in lending, quantifications of risks within each item of the portfolioand reaching a conclusion as to the likely composite credit risk profile of a bank.The corner stone of credit risk management is the establishment of a framework that defines corporate priorities, loan approval process, credit risk rating system, risk-adjusted pricing system, loan-review mechanism and comprehensive reporting system.1.2 Significance of the study:The fundamental business of lending has brought trouble to individual banks and entire banking system. It is, therefore, imperative that the banks are adequate systems for credit assessment of individual projects and evaluating risk associated therewith as well as the industry as a whole. Generally, Banks in India evaluate a proposal through the traditional tools of project financing, computing maximum permissible limits, assessing management capabilities and prescribing a ceilingfor an industry exposure. As banks move in to a new high powered world of financial operations and trading, with new risks, the need is felt for more sophisticated and versatile instruments for risk assessment, monitoring and controlling risk exposures. It is, therefore, time that banks managements equip themselves fully to grapple with the demands of creating tools and systems capable of assessing, monitoring and controlling risk exposures in a more scientific manner.Credit Risk, that is, default by the borrower to repay lent money, remains the most important riskto manage till date. The predominance of credit risk is even reflected in the composition of economic capital, which banks are required to keep a side for protection against various risks. According to one estimate, Credit Risk takes about 70% and 30%remaining is shared between the other two primary risks, namely Market risk (change in the market price and operational risk i.e., failure of internal controls, etc.). Quality borrowers (Tier-I borrowers) were able to access the capital market directly without going through the debt route. Hence, the credit route is now more open to lesser mortals (Tier-II borrowers).With margin levels going down, banks are unable to absorb the level of loan losses. There has been very little effort to develop a method where risks could be identified and measured. Most of the banks have developed internal rating systems for their borrowers, but there hasbeen verylittle study to compare such ratings with the final asset classification and also to fine-tune the rating system. Also risks peculiar to each industry are not identified and evaluated openly. Data collection is regular driven. Data on industry-wise, region-wise lending, industry-wise rehabilitated loan, can provide an insight into the future course to be adopted.Better and effective strategic credit risk management process is a better way to Manage portfolio credit risk. The process provides a framework to ensure consistency between strategy and implementation that reduces potential volatility in earnings and maximize shareholders wealth. Beyondand over riding the specifics of risk modeling issues, the challenge is moving towards improved creditrisk management lies in addressing banks’readiness and openness to accept change to a more transparent system, to rapidly metamorphosing markets, to more effective and efficient ways of operating and to meet market requirements and increased answerability to stake holders.There is a need for Strategic approach to Credit Risk Management (CRM) in Indian Commercial Banks, particularly in view of;(1) Higher NPAs level in comparison with global benchmark(2) RBI’ s stipulation about dividend distribution by the banks(3) Revised NPAs level and CAR norms(4) New Basel Capital Accord (Basel –II) revolutionAccording to the study conducted by ICRA Limited, the gross NPAs as a proportion of total advances for Indian Banks was 9.40 percent for financial year 2003 and 10.60 percent for financial year 20021. The value of the gross NPAs as ratio for financial year 2003 for the global benchmark banks was as low as 2.26 percent. Net NPAs as a proportion of net advances of Indian banks was 4.33 percent for financial year 2003 and 5.39 percent for financial year 2002. As against this, the value ofnet NPAs ratio for financial year 2003 for the global benchmark banks was 0.37 percent. Further, it was found that, the total advances of the banking sector to the commercial and agricultural sectors stood at Rs.8,00,000 crore. Of this, Rs.75,000 crore, or 9.40 percent of the total advances is bad and doubtful debt. The size of the NPAs portfolio in the Indian banking industry is close to Rs.1,00,000crore which is around 6 percent of India’ s GDP2.The RBI has recently announced that the banks should not pay dividends at more than 33.33 percent of their net profit. It has further provided that the banks having NPA levels less than 3 percentand having Capital Adequacy Reserve Ratio (CARR) of more than 11 percent for the last two years will only be eligible to declare dividends without the permission from RBI3. This step is for strengthening the balance sheet of all the banks in the country. The banks should provide sufficient provisions from their profits so as to bring down the net NPAs level to 3 percent of their advances.NPAs are the primary indicators of credit risk. Capital Adequacy Ratio (CAR) is another measureof credit risk. CAR is supposed to act as a buffer against credit loss, which isset at 9 percent under theRBI stipulation4. With a view to moving towards International best practices and to ensure greaterdue’ norm for identification of NPAs transparency, it has been decided to adopt the ’ 90 days’‘ overfrom the year ending March 31, 2004.The New Basel Capital Accord is scheduled to be implemented by the end of 2006. All the banking supervisors may have to join the Accord. Even the domestic banks in addition to internationally active banks may have to conform to the Accord principles in the coming decades. The RBI as the regulatorof the Indian banking industry has shown keen interest in strengthening the system, and the individual banks have responded in good measure in orienting themselves towards global best practices.1.3 Credit Risk Management(CRM) dynamics:The world over, credit risk has proved to be the most critical of all risks faced by a banking institution. A study of bank failures in New England found that, of the 62 banks in existence before 1984, which failed from 1989 to 1992, in 58 cases it was observed that loans and advances were notbeing repaid in time 5 . This signifies the role of credit risk management and therefore it forms the basisof present research analysis.Researchers and risk management practitioners have constantly tried to improve on current techniques and in recent years, enormous strides have been made in the art and science of credit risk measurement and management6. Much of the progress in this field has resulted form the limitations of traditional approaches to credit risk management and with the current Bank for International (BIS) regulatory model. Even in banks which regularly fine-tune credit policies and Settlement’　streamline credit processes, it is a real challenge for credit risk managers to correctly identify pocketsof risk concentration, quantify extent of risk carried, identify opportunities for diversification and balance the risk-return trade-off in their credit portfolio.The two distinct dimensions of credit risk management can readily be identified as preventive measures and curative measures. Preventive measures include risk assessment, risk measurement andrisk pricing, early warning system to pick early signals of future defaults and better credit portfolio diversification. The curative measures, on the other hand, aim at minimizing post-sanction loan losses through such steps as securitization, derivative trading, risk sharing, legal enforcement etc. It is widely believed that an ounce of prevention is worth a pound of cure. Therefore, the focus of the study is on preventive measures in tune with the norms prescribed by New Basel Capital Accord.The study also intends to throw some light on the two most significant developments impacting the fundamentals of credit risk management practices of banking industry – New Basel Capital Accord and Risk Based Supervision. Apart from highlighting the salient features of credit risk management prescriptions under New Basel Accord, attempts are made to codify the response of Indian banking professionals to various proposals under the accord. Similarly, RBI proposed Risk Based Supervision (RBS) is examined to capture its direction and implementation problems。

商业银行信用卡风险管理外文文献翻译最新译文

文献出处：Nicely E. The research of commercial bank credit risk management [J]. Research in International Business and Finance, 2015, 8(2): 17-26.原文The research of commercial bank credit risk managementNicely EAbstractCommercial bank credit card business risk management broad sense refers to the commercial bank credit card business, because of various unfavorable factors caused by the issuers, cardholders, specially engaged the possibility of loss. Credit risk refers to the pure credit for credit CARDS are unsecured loans, and credit is not high, the customer more than individual, as well as small amount of single feature, lead to the possibility of loss of card issuers. Through to the commercial Banks to do a good job of credit card risk management put forward the Suggestions and comments, and pay attention to the risks of commercial Banks to establish perfect management system, system, business process research, and put forward the commercial Banks in establishing a system of credit card business management structure, regulations, at the same time, want to notice to each kind of risk identification, measurement, assessment and do a good job in risk loss provisions in personnel management, should pay attention to establish risk rewards and punishment mechanism, pay attention to the positive incentives to the employees.Keywords: Credit CARDS; Risk management; Incentive mechanism1 IntroductionCredit card refers to the bank issued to individuals and units, with the function such as shopping, consumption and access cash bank card. Its striking feature is that the Banks granted to customer a certain line of credit, customers can enjoy the privilege of the reimbursement after be being card first, its form is a positive with the issuing bank name, the period of validity, card number, card, the cardholder's name, article with a magnetic stripe, signature on the back of the information such as bank CARDS. We now call the credit card, generally refers to borrow write down card. Credit risk refers to the bank credit card holders for various reasons failed to fullyrepay bank debt and cause the possibility of default, defaults, bank will because the cardholder does not thereby causing loss to the bank funds paid promptly. Credit card main risk including fraud risk, credit risk, operational risk, accredit card risk management refers to in the process of credit card business, the possible including fraud risk, credit risk, operational risk, etc, all kinds of risk management and control is to reduce the possibility of loss The loss rate of operation and management activities.2 Literature reviewThe concept of risk management since the 30 s of 20th century, after nearly 40 years of development to form a system, gradually by people began to attach importance to and cognition, form a new management discipline. The concept of risk mainly comes from the insurance industry, insurance for risk defined as the uncertainty of loss. In 1964, the United States of the risk management and insurance, it has made the definition: risk book points out that through the risk identification, assessment, and control to achieve with minimum cost to make a management method of minimizing the risk loss. In 1976, eight Gerry, in his book, the risk management of international enterprise, points out that protection of enterprise's financial stability, reduce the loss caused by risk events is the main goal of the enterprise risk management. In 1975, risk management and insurance management society, scholars from all over the world including general principles, risk management was determined by the talk of risk identification and measurement, risk control and other criteria. The establishment of these guidelines, marks all over the world, risk management theory with the preliminary development, management framework has been set up. Also marks the risk management has entered a new stage. In July 2004, Basel 2 rules on commercial Banks, puts forward a new risk management requirements, he fully considered for the bank including market risk, liquidity risk, credit risk and operational risk, a variety of provide for risk identification, risk measurement standard, make risk management work more accurate quantitative measurement. In 2004, the COSO committee issued "enterprise risk management integrated framework", put forward by the enterprise internal control into risk control as the main direction of management thinking. Puts forward the concept of comprehensive risk management,including internal environment, goal setting, time identification, risk evaluation, risk countermeasure, control activities, information and communication and so on eight aspects. American engineer bill fair and Earl joint research and development of the FICO credit score model, since the most card issuers have also been used this model. This model gives the credit scoring system out of a possible 900 points, according to the situation of the borrower's credit history and compare the data with other borrowers, given the borrower credit situation trend in the future.3 Credit card risk3.1 Credit card cash outCredit card cash out to merchants with the bad cardholders or other third party in collusion, or merchants themselves by credit card as the carrier, through the fictitious transactions, asking price, cash return, show the credit card credit behavior, including but not limited to: merchants and cardholders conspired to use point-of-sale terminals (POS), with fictitious transactions, falsely making out the price, cash returns to the behavior of the cardholders to pay cash directly; Or merchants to help paid the cardholder account overdraft, after using the POS machine will advances in fictitious trading way back to their accounts, and collect fees to the cardholder a card such as behavior; Or online merchants cardholders conspired to fictional price, false transactions, such as buying from selling the way, show the credit card for trafficking in fraudulent credit card Internet consumption credit, etc.3.2 False card stolen brushFalse card stolen brush refers to criminals use false card on the POS terminal for credit card transactions to steal bank funds, belong to the important type of fraud. Criminals often by merchants, independent bank terminals, as well as a variety of convenient payment terminal channels, using dedicated track record the equipment needed for the bank card information side track information through various channels, such as the Internet or buy others have steal bank card track information, password access usually by peeping in the cardholder spending places the cardholder password or independent in ATM equipment installed video cameras record customer password, even through ATM keyboard paste, such as false record customer password keyboard,or using client code, easy to guess the cardholder password and other means to obtain the cardholder password.3.3 Online payment fraudOnline payment fraud refers to the fraud part swindled through Internet channels and the cardholder's bank. On-line payment fraud mainly by non-financial institutions or commercial Banks provide online payment channel for fraud. Current fraud activists by phishing site, bank card fraud or Trojan virus, characterized by use of phishing site or Trojan virus to steal the cardholder's bank card number, password and verification code information, phishing cardholders to online trading, to defraud money. Or commercial bank online banking channel for bank card fraud, fraud part using bank online banking vulnerabilities, and the weak link in the online banking fraud.3.4 Operating riskPrevention and control of credit card operation risk, first, to find a good risk points, find out in the hairpin and post-loan risk prone link in the entire process, find out the risk points, and then control the risk. Credit card's life cycle is divided into application stage, audit stage, hairpin used to send phase, activation and post-loan management, such as card renewal phase. First by the applicant voluntarily to the commercial bank to apply for or commercial bank marketing personnel to promote credit card products to the applicant, the applicant according to the guidance of sales people to fill out credit card application form after the above requirements to fill out information, to submit proof of identity is required by the application, work proves that the domicile certificate materials, such as bank marketing personnel will be the applicant's application form submitted to the bank's examination and approval department, by a bank according to the customer qualification examination and approval department for credit card mail after examination and approval to the customer. Customers call the bank customer service special line opened activate the card, the card can normal use, generally the validity of the credit card for 3 ~ 5 years according to the process of the life cycle of credit card sorting operation risk points exist in the whole cycle.4 Conclusions and recommendationsFalse card stolen brush loss brings to the commercial Banks, cardholders Carrie's money is missing, tend to give the feeling of cardholders' money in the bank is not safe, affect the reputation of the bank, bring bank reputation risk. In the process of pursuing for unauthorized, if not solve in time, often commercial Banks must bear a lot of damage. Due to false card stolen brush is not tight to bank losses, and seriously affected the reputation of the bank. So focus on guard against the risk of false card stolen brush is the key of the bank fraud risk control. Commercial bank credit card business is strengthening risk prevention. To do the following: to strengthen the education of the cardholder and prevent unauthorized knowledge propaganda, tip card holders do not use the card to the others, pay attention to protect the password in the daily charge without being stolen. Strengthen the bank back transaction monitoring, summarizes the characteristics of the pseudo card stolen brush, such as the combination of false card stolen brush is easy to occur before time, business category, unauthorized ongoing balance inquiry, around zero, fraud part of bank daily trading limit restrictions for unauthorized transaction monitoring rules set by the characteristics. When the transaction behavior, identity card and cardholders are found not to conform or high transaction should contact the cardholder to confirm authenticity, to confirm that the cardholder to authorize the transaction after I deal correct. Effectively raise Banks to prevent false card stolen brush ability of risk prevention and control. Magnetic stripe card renewal work done as soon as possible because the bank magnetic stripe card refers to magnetic materials for storage medium, such as bank account information recorded in the magnetic stripe CARDS, magnetic stripe card is easy to be copied to the bank money loss, therefore at present a lot of Banks have begun to bank card renewal work, with good safety performance of financial IC card instead of bank magnetic stripe card. In addition, improve the incentive mechanism construction of risk management, on the basis of regular and irregular in the risk assessment results, good for the risk assessment results, comprehensive risk management framework construction perfect mechanism, through the authorization for adjustment, performance ratings, priority support to start newbusiness delegation, adjustment factors of business innovation, management, can be appropriately in the human resources and cost allocation give policy tilt, can give points in performance appraisal review. For risk management body have made outstanding contributions or reduce loss of major risk events offer certain material and spiritual reward employees, and on the personal career advancement channels give sufficient consideration; For all kinds of risk management talents, external training, qualification certification, access to exchange offer certain aspects such as policy tilt, and on the personal career advancement channels will be given full consideration. For all kinds of risk management talents, external training, qualification certification, access to exchange offer certain aspects such as policy tilt, and on the personal career advancement channels will be given full consideration.译文商业银行信用卡风险管理研究Nicely E摘要商业银行信用卡业务风险管理广义上讲是指在商业银行信用卡业务经营中，因各种不利因素而导致的发卡机构、持卡人、特约商户等损失的可能性。

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金融银行信用风险管理外文翻译文献(文档含中英文对照即英文原文和中文翻译)原文:Managing Credit Risks with Knowledge Management forFinancial BanksPan JinDepartment of EconomicsEconomics and Management School of Wuhan UniversityWuhan,Hubei Province,430072,ChinaAbstract-Nowadays,financial banks are operating in a knowledge society and there are more and more credit risks breaking out in banks.So,this paper first discusses the implications of knowledge and knowledge management, and then analyzes credit risks of financial bankswith knowledge management. Finally, the paper studies ways for banks to manage credit risks with knowledge management. With the application of knowledge management in financial banks, customers will acquire better service and banks will acquire more rewards.Index Terms–knowledge management; credit risk; risk management; incentive mechanism; financial banksI.INTRODUCTIONNowadays,banks are operating in a“knowledge society”.So, what is knowledge? Davenport(1996)[1]thinks knowledge is professional intellect, such as know-what, know-how, know-why, and self-motivated creativity, or experience, concepts, values, beliefs and ways of working that can be shared and communicated. The awareness of the importance of knowledge results in the critical issue of “knowledge management”. So, what is knowledge management? According to Malhothra(2001)[2], knowledge management(KM)caters to the critical issues of organizational adaptation, survival and competence in face of increasingly discontinuous environmental change. Essentially it embodies organizational processes that seek synergistic combination of data and information processing capacity of information technologies and the creative and innovative capacity of human beings. Through the processes of creating,sustaining, applying, sharing and renewing knowledge, we can enhance organizational performance and create value.Many dissertations have studied knowledge managementapplications in some special fields. Aybübe Aurum(2004)[3] analyzes knowledge management in software engineering and D.J.Harvey＆R.Holdsworth(2005)[4]study knowledge management in the aerospace industry. Li Yang(2007)[5] studies knowledge management in information-based education and Jayasundara＆Chaminda Chiran(2008)[6] review the prevailing literature on knowledge management in banking industries. Liang ping and Wu Kebao(2010)[7]study the incentive mechanism of knowledge management inBanking.There are also many papers about risks analysis and risks management. Before the 1980s, the dominant mathematical theory of risks analysis was to describe a pair of random vectors.But,the simplification assumptions and methods used by classical competing risksanalysis caused controversy and criticism.Starting around the 1980s, an alternative formulation of risk analysis was developed,with the hope to better resolve the issues of failure dependency and distribution identifiability. The new formulation is univariate risk analysis.According to Crowder(2001)[8], David＆Moeschberger(1978)[9]and Hougaard(2000)[10],univariate survival risk analysis has been dominantly, which is based on the i.i.d assumptions(independent and identically distributed) or, at least, based on the independent failure assumption.Distribution-free regression modeling allows one to investigate the influences of multiple covariates on the failure, and it relaxes the assumption of identical failure distribution and to some extent, it also relaxes the single failure risk restriction. However, the independent failures as well as single failure events are still assumed in the univariate survival analysis. Of course,these deficiencies do not invalidate univariate analysis, and indeed, in many applications, those assumptions are realistically valid.Based on the above mentioned studies, Ma and Krings(2008a, 2008b)[11]discuss the relationship and difference of univariate and multivariate analysis in calculating risks.As for the papers on managing the risks in banks, Lawrence J.White(2008)[12]studies the risks of financial innovations and takes out some countermeasures to regulate financial innovations. Shao Baiquan(2010)[13]studies the ways to manage the risks in banks.From the above papers, we can see that few scholars have studied the way to manage credit risks with knowledge management. So this paper will discuss using knowledge management to manage credit risks for financial banks.This paper is organized as follows: SectionⅠis introduction. SectionⅡanalyzes credit risks in banks with knowledge management. SectionⅢstudies ways for banks to manage credit risks with knowledge management. SectionⅣconcludes.II.ANALYZING CREDIT RISKS IN BANKS WITHKNOWLEDGE MANAGEMENTA.Implication of Credit RiskCredit risk is the risk of loss due to a debtor’s non-payment of a loan or other line of credit, which may be the principal or interest or both.Because there are many types of loans and counterparties-from individuals to sovereign governments-and many different types ofobligations-from auto loans to derivatives transactions-credit risk may take many forms.Credit risk is common in our daily life and we can not cover it completely,for example,the American subprime lending crisis is caused by credit risk,which is that the poor lenders do not pay principal and interest back to the banks and the banks do not pay the investors who buy the securities based on the loans.From the example,we can find that there are still credit risks,though banks have developed many financial innovations to manage risks.B.Sharing KnowledgeKnowledge in banks includes tacit knowledge and explicit knowledge,which is scattered in different fields.For example, the information about the customers’income, asset and credit is controlled by different departments and different staffs and the information can’t be communicated with others. So it is necessary for banks to set up a whole system to communicate and share the information and knowledge to manage the risks.C.Setting up Incentive Mechanism and Encouraging Knowledge InnovationThe warning mechanism of credit risks depends on how bank’s staffs use the knowledge of customers and how the staffs use the knowledge creatively.The abilities of staffs to innovate depend on the incentive mechanism in banks,so, banks should take out incentive mechanism to urge staffs to learn more knowledge and work creatively to manage credit risks.We can show the incentive mechanism as Fig.1:MeasuringknowledgeStimulative／punitive measuresPunitivemeasures Stimulativemeasures Indirect contributionDirect contributionFig.1 The model of incentive mechanism with knowledge managementFrom 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. III.MANAGING CREDIT RISKS IN BANKS WITH KNOWLEDGEMANAGEMENTThere are four blocks in managing credit risks with knowledge management.We can show them in Fig.2:Fig.2 The blocks of managing credit risksA.Distinguishing Credit RiskDistinguishing 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 ● Yellow-card warning ● Red-card warning ● Dismissing or laying-off ● Wealthy rewards ● Training ● Promotion Distinguishing credit risks Managing credit risks and feeding back Reducing credit risks Assessing and calculating credit risksone 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 RiskAfter 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 ＆Poo r’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 ISTANDARD＆POOR’S CREDITT RATINGSCredit ratings ImplicationsAAA Best credit quality,extremely reliableAA Very good credit quality,very reliableA More susceptible to economic conditionsBBB Lowest rating in investment gradeBB Caution is necessaryB Vulnerable to changes in economicCCC Currently vulnerable to nonpaymentCC Highly vulnerable to payment defaultC Close to bankruptD Payment default has actually occurredAfter 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-BasedApproach 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 RiskAfter 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 backA 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 thecustomers 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.CONCLUSIONIn 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.ACKNOWLEDGMENTIt is financed by the humanities and social sciences project of the Ministry of Education of China(NO.06JC790032).REFERENCES[1]Davenport,T.H.et al,“Improving knowledge work processes,”Sloan Management Review,MIT,USA,1996,V ol.38,pp.53-65.[2]Malhothra,“Knowledge management for the new world of business,”New York B RINT Institute,2001,lkm/whatis.htm.[3]Aybübe Aurum,“Knowledge management in software engineering education,”Proceedings of the IEEE International Conference on Advanced Learning Technologies,2004,pp.370-374.[4]D.J.Harvey＆R.Holdsworth,“Knowledge management in the aerospace industry,”Proceedings of the IEEE International Professional Communication Conference,2005,pp.237-243.[5]Li Yang,“Thinking about knowledge management applications in information-basededucation,”IEEE International Co nference on Advanced Learning Technologies,2007,pp.27-33.[6]Jayasundara＆Chaminda Chiran,“Knowledge management in banking industries:uses and opportunities,”Journal of the University Librarians Association of Sri Lanka,2008,V ol.12,pp.68-84.[7]Liang Ping,Wu Kebao,“Knowledge management in banking,”The Conference on Engineering and Business Management,2010, pp.4719-4722.[8]Crowder,M.J.Classical Competing Risks,British:Chapman&Hall, 2001,pp.200.[9]David,H.A.&M.L.Moeschberger,The Theory of Competing Risks, Scotland,Macmillan Publishing,1978,pp.103.翻译:金融银行信用风险管理与知识管理摘要：目前，金融银行经营在一个知识型社会中，而且越来越多的信用风险在在银行中爆发。