The Research On Loan Management Of Commercial Bank Based On The Customer Credit Rating

Commercial banks are the core of the modern financial system, and its smooth operation and healthy development plays a very important role in the social economic stability and development. As one of the basic operations of commercial banks, the operating conditions of loan business and the quality of loan assets have an important impact on the banks ’ operating performance and risks. With the full liberalization of the financial markets, commercial banks are facing enormous opportunities of development, and also facing greater challenges by fierce competition with other financial institutions like foreign banks. In the new market environment, the decline of the difference between deposit and loan rates and the rapid development of off-balance-sheet derivatives make the commercial banks’ loan management increasingly complex. Therefore, it is necessary to study the management of commercial banks’ loan comprehensively. It helps commercial banks evaluating the credit risk accurately, and improving the credit evaluation system, optimizing the loan pricing and loan facilities identifying. What’s more, it helps banks optimizing the resource allocation and improving banks’ business efficiency.Based on customer credit rating, this paper researches commercial banks’ loan management by combining theoretical analysis with empirical analysis. With regards to the theoretical analysis, this paper has a brief discussion and analysis on the definition of loan management concepts, commercial banks’ loan management theories, commercial banks’ loan management process and commercial banks’ customer credit ratings. Firstly, the paper expounds the concept of loan and loan management. Secondly, it analyzes the existing commercial banks’ loan management theory. Thirdly, this article goes deep into study the commercial banks’ loan management process. Finally, it discusses the commercial banks’ customer credit ratings’ s concept, its effect and the major methods for credit rating.In terms of the empirical analysis, this paper from the evaluation of the credit risk on the commercial banks’ customer, the impact of the degree of market economy on the commercial banks’ customer credit rating, building of the commercial banks’ customer credit rating, commercial banks’ loan pricing, and commercial banks’ loan facilities identifying to study the commercial banks’ loan management issues which based on the customer credit rating systematically. First of all, this article evaluates the credit risk of commercial banks’ customer with improved KMV model. The empirical results shows that improved KMV model evaluate the credit risk more accurately when compared with the traditional KMV model. And it can reflect the actual credit condition of customer more exactly. Then, it builds a binary Logit model to examine impact of the degree of market economy on the commercial banks’ customer credit rating. It confirms that the degree of market economy has a non-linear effect of inverted U-shaped on commercial banks’ customer credit ratings. What’s more, in the five degree of market indicators which include relationship between government and the market, development of non-state-owned economy, degree of the development in product markets, degree of the development in element markets, the development of market intermediaries and the environment of legal institutional, the non-state-owned economy is the major factor that makes economic market has impact on customer credit rating. Again, refering to the existing credit rating index system, introduce the credit risk and the degree of economic indicators to build a new credit rating index system, and uses AHP method to determine the rating index weights. Further more, this paper references the CAPM model and build a loan pricing model of commercial banks based on the customer credit rating. The loan pricing model of commercial banks takes account of the relationship between the benchmark rate of the loaning, the customer credit rating and the loan pricing compared with traditional loan pricing model. It fully reflects the matching principle of rish and return. It enables commercial banks adjust risk premium according to the risk of special loan transaction. And it helps commercial banks to determine more reasonable loaning rates to improve loan management system. What’s more, the loan pricing model prompts customer to enhance its financial level and debt paying ability in order to improve credit rating, so that they can strengthen the cooperation with commercial banks in all aspects to obtain lower interest rate. Following, in order to study the impact of customer credit rating on the credit limit of commercial bank, this article add the customer credit rating to the existing credit limit model based on the maximum debt space of customer, and build a new model to identify the credit limit of commercial bank based on the customer credit rating. The empirical results show that the credit limit that the commercial banks should give the customer generally presents upward trend with the increase of the customer’s maximum debt space. And there is a positive relationship between the customer credit rating and the credit limit of the commercial banks. The higher the volatility of equity market value is, the higher the control line of financing trade accounted of the commercial bank is, and the higher the credit limit of the commercial banks is.Finally, this paper analyzes the barriers of using loan management model in the domestic commercial bank loan management, and puts forward relevant proposals to strengthen loan management combined with foreign commercial bank loan management experience.