Enactment of Default Point in KMV Model on CMBC, SPDB, CMB, Huaxia Bank and SDB

This study¡¯s objective was to solve the problem that probing default point of KMV in listed bank of China. A new model of default point is constructed, because Chinese listed banks on owing to the existence of non-tradable shares. The using of listed banks in China: CMBC, CMB, SDB, SPDB, HUA XIA BANK in the second half of 2004 to 2007 per annum related stocks and financial data. The model of DPT equal to current liabilities (STD) plus 0.25 Long-term debt (LTD) for CMB, SPDB ,CMBC, HUA XIA BANK; The model of DPT equal to current liabilities (STD) plus 0.75 Long-term debt (LTD) for SPB. At the same time, these models have been tested; the results will pass the test. The new model is feasible for probing default point of KMV in listed bank of China.