Banks as the key subjects in the financing of investment have a strong influence on the risk of investors. Hence, the solvency of the bank is of crucial importance for the risk management in the investment process. Gi...Banks as the key subjects in the financing of investment have a strong influence on the risk of investors. Hence, the solvency of the bank is of crucial importance for the risk management in the investment process. Given the fact of underdevelopment of financial markets and the lack of trading activities in securities, it is evident that the investments of banks in the developing countries mostly include lending investments. Looking at the key categories of risk that influence the overall risk of the banking business in such conditions, it can be concluded that credit risk presents the dominant and decisive factor. The aim of the paper is to select the bank determinant key factors of credit risk and to determine the extent to which non-performing loans （NPL） of bank credits affect the solvency of banks, and therefore also the risk of investors. This selection of the main determinants will be based on the analysis of financial statements. This is essential, especially taking into account the impact of the global financial crisis and the increasingly frequent falling into insolvency customers. Finally, liquidity of customers is that of the bank, and it is crucial for investors to timely identify possible risks associated with bank loans in order to proactively manage risk investment.展开更多
It is known that the current Credit Rating in financial markets of China is facing at least three problems:1)the rating is falsely high;2)the differentiation of credit rating is insufficient;and 3)the poor performance...It is known that the current Credit Rating in financial markets of China is facing at least three problems:1)the rating is falsely high;2)the differentiation of credit rating is insufficient;and 3)the poor performance of predicting early warning,thus we must consider how to create a reasonable new credit risk analysis approach to deal with issues for financial markets in China for those listed companies’performance.This report shows that by using a newmethod called the“Hologram approach”as a tool,we are able to establish a so-called“CAFÉRisk Analysis System”(in short,“CAFÉApproach”,or“CAFÉ”)to resolve three issues for credit rating in China.In particular,the main goal in this paper is to give a comprehensive report for credit risk assessments for eight selected list companies by applying our“CAFÉ”from different industry sectors against actual market performance with the time period from the past one to three years through our one-by-one interpretation for event screening and true occurrence and related events.In this way,we show how“CAFÉ”is able to resolve current three major problems of“rating is falsely high,the differentiation of credit rating grades is insufficient,and the poor performance of predicting early warning”in the current credit market in China’s financial industry in practice.展开更多
The paper firstly gives a brief introduction of the credit focus as a result of the competition among the branch banks of the Commercial Bank. Then from the viewpoint of the performance of the branch bank, an analysis...The paper firstly gives a brief introduction of the credit focus as a result of the competition among the branch banks of the Commercial Bank. Then from the viewpoint of the performance of the branch bank, an analysis is made on the mechanism of the formation of the credit focus. Based on the analysis, the paper points out that the Commercial Bank branches, under competition of the deposit restrain, have brought about excessive credit, which exceeds the finance required by the normal business. And finally the paper forms the credit risk of the bank.展开更多
文摘Banks as the key subjects in the financing of investment have a strong influence on the risk of investors. Hence, the solvency of the bank is of crucial importance for the risk management in the investment process. Given the fact of underdevelopment of financial markets and the lack of trading activities in securities, it is evident that the investments of banks in the developing countries mostly include lending investments. Looking at the key categories of risk that influence the overall risk of the banking business in such conditions, it can be concluded that credit risk presents the dominant and decisive factor. The aim of the paper is to select the bank determinant key factors of credit risk and to determine the extent to which non-performing loans （NPL） of bank credits affect the solvency of banks, and therefore also the risk of investors. This selection of the main determinants will be based on the analysis of financial statements. This is essential, especially taking into account the impact of the global financial crisis and the increasingly frequent falling into insolvency customers. Finally, liquidity of customers is that of the bank, and it is crucial for investors to timely identify possible risks associated with bank loans in order to proactively manage risk investment.
文摘It is known that the current Credit Rating in financial markets of China is facing at least three problems:1)the rating is falsely high;2)the differentiation of credit rating is insufficient;and 3)the poor performance of predicting early warning,thus we must consider how to create a reasonable new credit risk analysis approach to deal with issues for financial markets in China for those listed companies’performance.This report shows that by using a newmethod called the“Hologram approach”as a tool,we are able to establish a so-called“CAFÉRisk Analysis System”(in short,“CAFÉApproach”,or“CAFÉ”)to resolve three issues for credit rating in China.In particular,the main goal in this paper is to give a comprehensive report for credit risk assessments for eight selected list companies by applying our“CAFÉ”from different industry sectors against actual market performance with the time period from the past one to three years through our one-by-one interpretation for event screening and true occurrence and related events.In this way,we show how“CAFÉ”is able to resolve current three major problems of“rating is falsely high,the differentiation of credit rating grades is insufficient,and the poor performance of predicting early warning”in the current credit market in China’s financial industry in practice.
文摘The paper firstly gives a brief introduction of the credit focus as a result of the competition among the branch banks of the Commercial Bank. Then from the viewpoint of the performance of the branch bank, an analysis is made on the mechanism of the formation of the credit focus. Based on the analysis, the paper points out that the Commercial Bank branches, under competition of the deposit restrain, have brought about excessive credit, which exceeds the finance required by the normal business. And finally the paper forms the credit risk of the bank.
