Loan risk mainly refers to the possibility of whether the loan principal and interest can be recovered on schedule. In this sense, the loan risk can be measured, and so can the loan risk. People can calculate the probability of recovering the loan principal and interest on schedule before or after the loan is issued by comprehensively investigating some factors. The so-called loan risk degree refers to the measure of loan risk degree. The loan risk degree is a concrete quantitative index that can be calculated. It is usually greater than zero and less than 1. The greater the loan risk, the less likely it is to recover the loan principal and interest on schedule. On the contrary, the smaller the loan risk, the greater the possibility of recovering the loan principal and interest on schedule. As an objective yardstick to measure the degree of loan risk, loan risk can be applied to the whole process of loan review, loan and investigation. It can be used not only to decide whether to lend or not, but also to check the quality of all loans under the jurisdiction of a bank or a courier company, and also to check the loan risk of borrowing enterprises, enterprise groups or industries. If the loan risk degree is properly used, it can not only restrict "seeking personal gain by lending", improve the level of loan decision-making, but also make the adjustment of credit structure implemented, which is also convenient for banks to assess and reward and punish credit management.

The measurement of loan risk is a complex problem, and the Bank of China has only started to implement loan risk management in recent years. Specifically, Shenzhen Branch of Agricultural Bank of China took the lead in implementing loan risk management in China. From the second half of 199 1, they began to try out the "loan asset risk management system" with loan risk as the core. At the beginning of 1994, China Industrial and Commercial Bank formulated and issued the Measures for Asset Risk Management of Industrial and Commercial Bank of China (Trial), which was tried out in the system. The asset risk management of China Industrial and Commercial Bank also follows the principle of quantitative management, and its so-called loan risk content is actually the degree of loan risk. 1On August 8, 1994, the People's Construction Bank of China issued the Pilot Measures for Loan Risk Management of the People's Construction Bank of China, and decided to conduct pilot loan risk management in Hubei Branch and Ningbo Branch of the Construction Bank at first, and made detailed provisions on the calculation of loan risk. The following people explain the calculation of loan risk according to the provisions of the Trial Measures for Loan Risk Management of the People's Construction Bank of China.

To measure the loan risk, we must first analyze the factors that affect the loan risk. Although the factors affecting the loan risk are complex and changeable, there are four main factors, namely, the loan object, the loan method, the loan term and the loan form. The measurement of loan risk must be the synthesis of the influence degree of the above four factors on loan risk.

The loan object is an important factor that affects the loan risk or ensures the loan safety. The influence of the loan object on the loan risk is closely related to the credit rating of the enterprise or project. Therefore, people can call the influence of the loan object on the loan risk the credit rating conversion coefficient of the loan object, which is referred to as "conversion coefficient" for short. According to the different credit rating of the loan object, the conversion coefficient of the credit rating of the loan object can be listed in the table, as shown in the following table. The loan method is the basic factor that affects the loan risk or ensures the loan safety, so people can call the influence of the loan method on the loan risk the basic coefficient of the loan method, or "basic coefficient" for short. Loan methods can be roughly divided into three categories: credit loans, guaranteed loans, mortgage loans and pledged loans. Guaranteed loans can be divided into seven types according to different guarantors, and mortgage loans and pledged loans can be divided into 15 types according to different collateral and pledge. Different loan methods have great differences in loan risks. The smaller the basic coefficient of the loan method, the safer the loan is. The basic coefficient of the loan law is similar to the nature and provisions of the loan risk weight or weight in the Basel Accord, and its specific provisions can be listed in the following table:

Once a loan is issued, it will form a loan asset. People refer to the occupation form of loan assets as loan form, and the influence degree of loan form on loan risk is called loan form conversion coefficient, which is referred to as "form coefficient" for short. Loan forms include normal loans and non-performing loans, among which non-performing loans are further divided into overdue loans, sluggish loans and non-performing loans. Different loan forms have different effects on loan risk.