Study On The Behavior Of Credit Decision-making Of Commercial Bank Of China

The bank credit is an indispensable part of the assets of china's commercial bank, the behavior of credit decision-making plays a singnificant role in operation performance.The commercial banks have carried out a series of shareholding system reform and preliminarily established the modern bank system through the way of injecting capital,restructuring the shares,introducting the strategic investors and making it be listed since 2003.comparing with European and American countries,however, China's commercial banks exist a lot of problems and the major ones are as follows:to begin with,there exists low efficiency in operation and profit ability and the source of profit is single,which still comes the traditional credit business;secondly,there is still much room for improvement in the way of credit decision making and management technology;what's more,the commercial banks pay more attention to the asset structure,operational business and management technology and focus litter attention on the inherent relationship between credit quality and bank operation.Although china's commercial banks make a great progress after a serise of reforms,they,restrainted by the behavior of credit decision making, achieve little progress.Credit stinting and credit discrimination have greatly reduced the scale of credit,which will leave unused capital,give rise to the capital shortage of enterprises(particularly SME) and thus refrain the production from increasing.On this background,studying on the behavior of china's commercial bank's credit decision making will do a great benefit to the improvement of the efficence in credit decicion making and the level of decicion making,and will play a significant role in the improvement of bank operation and the credit decision making system of china's bank.There are many papers studying on the behaviors of credit decision-making in foreign.However, because of the marketization of china's commercial bank proceed short and thus lack of efficent sample data,domestic studies on this are not enough and most of these studies analyzed in a qualitative view.So how to use the current data,proper statistical and mathematical technique,and analyzes the behavior of china's credit decision-making in a quantitative view,and then seek the optimal way of bank credit mechanism and methods are the key problems this paper trys to solve.Based on the imformation economics,transaction cost theory,credit rationing and the theory of modern commercial bank management,this paper comprehensively analyzes the behavior of commercial bank credit decision-making through constructing the model of bank credit decision making.Over the past twenty years,the imformation economics have gained a great achievement.Differentiating from the traditional economics in the way of resource allocation,Information economics advocates that the price sometimes can't represent the signal of resource's scarcity and the non-price mechanism, to a great degree, determines the resource allocation.they believe that the change of price relies on the supply and demand as well as other factors such as imformation and transaction cost.as a result of transaction cost, commercial bank's behavior likes to lower transaction cost in order to reduce the cost. In additon,credit rationing is an another important factor that we need to focus on when we study on the behavior of credit decision making of commercial bank.In a word,based on the analysis of imformation environment,transaction cost and credit rationing,and in combination with the present development of commercial bank of china ,this paper studies on the behavior of china's commercial bank's credit decision making from multiple perspectives.The key contents of this paper can come down to five aspects:Firstly,improve the theoretical model of credit decision making of commercial bank.For one thing,with the full open of financial industry and the development of bank industry,the bank industry is in a competition situation.meanwhile,with the improvement of external environment,the authenticity of gaining imformation is increasing and its cost is growingly reduced.This paper constructs the model of credit decision making under the situation of information symmetry,the article analyzes the relationship between loan price and other factors,which are in line with the tides of the bank industry's development and make a solid foundation for the analysis on the relationship of credit factors;For another thing,this paper analyzes the process of equilibrium of credit market in a macro perspective;In addition,analyzing from the angles of the market competition and potential entrants,this article studies on the relization mechanism that transits from micro equilibrium to macro equilibrium.Secondly,analyze the basis of behavior of credit decision making of bank industry and this paper makes it from the level of corperate governance,the quality of credit,the profit ability and analysis of typical bank.The level of corperate govenance is the basis of bank's efficient operation as well as a hard constraint of the behavior of credit decision making;the analysis of loan and bad loan represent the behavior of credit decision making of commercial banks;the profit ability is the goal of commercial banks as well as the target of the behavior of credit decision making;the analysis of typical bank can help us gain a better understanding about effects that the behavior of credit decision making may cause.In the first place,based on the analysis of LLSV model(1998,2000),this paper analyzes the governance structure from the aspects of external governance and internal governance;In the second place,this paper discussed the development and change of loan scale,structure,bad loan,profit ability and profit level.In addition,this article analyzes the effects the behavior of credit decision making of commercial bank may cause through the analysis of specific indicators of three typical banks.Thirdly,discuss the behavior of credit decision making of commercial bank from the angle of enterprise.To begin with, based on theoretical deduction,this paper studies on the behavior of credit decision making of banks on the condition of asymmtry imformation.In the process of credit decision making,due to asymmetry information,bank gains less information of enterprise than enterprise itself,as a result,bank will have a preferance to the mortgage guarantee in order to reduce adverse selection,moral hazard and transaction cost.Analyzing the ability of repayment under the situation of mortgage loan and non-mortgage loan from perspectives of adverse selection,moral hazard and transaction cost,this paper ,adopting factor analysis method and using pratical data,discusses whether there exists preferance to mortgage loan.The results show that:there is no preferance to mortgage loan in the short run,however, it exists in the long run.Besides,since the cost of gaining information of non-stated-owned enterprise is usually high ,the overall strengh of non-stated-owned enterprise,however, is not that powerful,so the of the nature of enterprise is also a factor that affect the behavior of credit decision making of commercial bank.Using theoretical model,This paper analyzes the behavior of credit decision making when considering the nature of enterprise, and further makes a empirical study using the Logistic model.Results display that:on the whole,there is no preferance to nature of enterprise.through concrete separation of credit,It also finds that there still exists no preferance to the nature of enterprise both credit loan and mortgage loan in the long term,hoever,there, to a degreee,exists perferance to the nature of enterprise both credit loan and mortgage loan in the short run.Fourthly,using the panel data model to analyze how some concerning indexes of listed enterprises affect the loan size,term and interests.findings show that:financial situation will affect the long-term loan size and loan term,which will,however,make no significant influence to the short-term loan size and loan term,the loan interest rate of commercial bank is not sensitive to the financial indicators of enterprise,the bank's ability of self-decision-making has greatly improved, and the banks focus great attention to the non-financial indicators when making decision.Finally,advance the optimal path of credit decision making of china's commercial bank:carefully analyze the first repayment source of enterprise,reasonablely assess the second repayment source of enterprise,moderately focus on the non-financial factor of enterprise and rapidly improve the enterprise credit assessing system.