T/CATIS 014-2023 Active

Scope: This document specifies the internal rating method for credit risk in commercial factoring business. This document is applicable to the internal risk management of credit risk in the factoring business activities of commercial factoring companies within the People's Republic of China, and is normative and standardized for commercial factoring companies. Main technical content: This standard is divided into nine parts. The internal rating system should be able to effectively identify credit risk, have a robust ability to distinguish and rank risks, and accurately quantify risks. Among them, the first part mainly elaborates on the regulatory content and scope of application of the "Internal Rating Norms for Credit Risk". The second part clarifies the standard documents referenced by the group standard "Internal Rating Norms for Credit Risk". The third part defines the relevant terms of commercial factoring business. The fourth part sets out the general requirements for internal rating. The fifth part establishes the governance structure of the internal rating system to ensure that internal rating is fully applied in credit risk management. The sixth part establishes internal rating technical standards to ensure that each debtor and debt are assigned to the corresponding risk level. The seventh part establishes the internal rating process to ensure the independence and fairness of internal rating. The eighth part establishes quantitative standards for risk parameters, converts the risk characteristics of debtors and debts into risk parameters such as default probability and default loss rate, and ensures the uniformity and reliability of internal rating results. The ninth part establishes IT and data management systems that can collect and process information related to internal rating and provide support for risk assessment and risk parameter quantification.