Study On The System Of Affiliated Enterprise And Risk Control Over Bank Credit

The system of affiliated enterprise enhances the benefit of scale and the ability of facing market competition. It also accelerates the development of many enterprises, but it is often used by some enterprises improperly and is becoming a measure to cheat bank credit, escape financial liability at the same time. The group of affiliated enterprises uses the system to threaten bank credit from many sides. Recently, the system is developing in banks because some enterprises invest into bank. The investment is advantageous to the development of banks, but meanwhile it makes bank become a drawing machine for big shareholders, which invades the benefit of some small shareholders and makes bank face another risk, the risk of affiliated loans. These risks are caused not only by the trait of the system, but also by the ill motive of some affiliated enterpr ses who utilize the disadvantage of the system of the bank and affiliated enterprise. So it is difficult and important for commercial bank to deal with these risks.Taking this issue as a main topic, the article analyses the kinds, causes and harms of credit risk that the system of affiliated enterprise leads to modern commercial bank by utilizing analytical methods of deduction and induction, theory and demonstration, qualitative and quantitative. Based on national experience, this article brings forward countermeasures for modem commercial bank on how to face the bank credit risk that the system of affiliated enterprise brings . The author puts forward these countermeasures not from the point of view of a bank manager, but from the point of view of a scholar who cares much about the development of finance .The first part of this article introduces the system of affiliated enterprise and three types of the affiliated enterprise Then it explains the theoretical basis of the system of affiliated enterprise by the theory of biological symbiosis from "income-cost" and the theory of trading cost from "cost-cost". In the second part, thearticle particularizes five credit risks that the system of affiliated enterprise brings. It analyses each risk from the side of cause and harm. The author introduces two cases to interpret the former two risks, the risk of affiliated guarantee and the risk of affiliated transaction. It also establishes an new equilibrium between demand and supply of the market of affiliated loan to interpret the risk of affiliated loan in detail. Thirdly, the thesis cites national experience on how to deal with the risk that the system of affiliated enterprise causes. Based on the experience and taking reality into account , in the fourth part of the paper, the author makes some suggestions.The article may have an innovation in the studying thought. The symbiosis is a relation of dependence on one another. The author regards the affiliation as a symbiosis and demonstrates its existence by the necessary and sufficient condition that a symbiosis must have, and explains how the system of affiliated enterprise come into being by the theory of biological symbiosis from "income-cost" and the theory of trading cost from "cost-cost".The article may have another innovation in the studying method. The author generalizes the risks that the system brings to bank credit systematically, including the risk of affiliated loans. I also establishes an new equilibrium between demand and supply of the market of affiliated loan to interpret the risk of affiliated loan in detail.