The Research On M&A Loan Risk Management Of Our Country Commercial Bank

On December 6, 2008, China banking regulatory commission (CBRC) issued the "Commercial bank M&A loan risk management guidelines ", clear allow qualified commercial bank to launch merger loan business, leading commercial bank rational support within domestic M&A square enterprise through transfer its existing stake, subscribe new equity, or buy assets, undertake debt in order to realize the means such as merger or actual control system of the target enterprise which has been established and sustainable business operation. M&A loan services can not only broad the scope of business of commercial bank loans, increase commercial bank interest income, but also can increase Chinese enterprise merger of the financing channels, to promote domestic enterprise merger integration, driving the country economy better development. But, while M&A loan brings opportunities to commercial Banks, it also accompanied by huge risk. the financial condition of both M&A enterprises, M&A integration and merger and acquisition success after completion of both business integration condition etc, are all have important influence to bank loan security. So, when commercial banks to issue loans, they should do acquisition corresponding risk analysis and risk evaluation as well as the risk prevention work.This article based on the correlation theories, detailed analysis the M&A loan risk of China commercial bank firstly. Unify through the policy research and the theoretical analysis, fully recognized the main risk sources of M&A, such as M & A companies risk, M&A integration risk, price risk loans, bank management risk,summarized the risk characteristics of M&A loans and its risk classification. Then, analysis and evaluate the major market risk, credit risk, operational risk measurement model, and finally select the Delta - Normal model, the Credit Metrics model, the Securities factor model separately lending for M&A market risk, credit risk and operational risk measurement.Then, after analysis the applicability of VAR method for M&A measuring, we measured the M&A loan risk. The findings indicated that the risk of M&A loan were big. Under 95% fiduciary level, a company with A rating, the market risk of M&A loan accounted for about 11% of loan amount, the credit risk is about 2.5%, the operational risk due to banks vary, the lowest about 2%, and the highest reached 20%. The unique limitation of VAR model as well as the imperfection of analytical data, may lead this conclusion does not match with the actual situation. Finally, unifies the actual situation of our country commercial bank, provides some risk measures for the loans before merger and the loan after merger, finally puts forward some feasible suggestions for M&A loan risk management...