Abstract: RAROC model was the advanced method to the International Banks for management. This paper will use the RAROC model to the research of credit risk of Agricultural Bank of China. It introduces the meaning and the core idea of RAROC model, and then detailed measuring the basic parameters of the model RAROC, and carrying on analysis and comparison using the RAROC value in the empirical research. The conclusion is the level of the credit risk management of Agricultural Bank increasing year by year, business performance making a spurt of progress, steady growth in loans, loan quality continuing to improve etc.