Credit Risks Previous Precaution And Control Research Of Hebei Branch Of Agricultural Bank Of China

With the quick development of economic globalization and financial integration, financial crisis breaks out frequently in the worldwide. Though in our country there has never been a crisis, there is hidden trouble in the large amount of non-performing loans of Chinese four state-owned commercial banks. The biggest risk of Hebei Branch of Agricultural Bank of China is the big accumulated sum of non-performing loans in its running process. Effective precaution and control of the occurrence of non-performing loans is the chief research topic of Hebei Branch of Agricultural Bank of China. Due to the aim and meaning of this research, in the paper the author makes a research on the cause of formation of credit risk in Hebei Branch of Agricultural Bank of China with the method of comparative analysis, inductive method, and empirical method. Especially credit flow customers department acceptation and research, credit management department investigation, loans investigation meeting examination and approval, and customer department operation and management are analyzed and studied. There are a lot of reasons of non-performing loans in Hebei Branch of Agricultural Bank of China, including internal reasons and external ones. Internally there are defects in the managing rules of Hebei Branch of Agricultural Bank of China. The direct reason for the credit risk is that the investigation before the credit is not reasonable. Under the guidance of modern business administration theory, the author redesigns the credit investigation program for Hebei Branch of Agricultural Bank of China and builds a uniform standardized credit investigation template according to the uniform credit investigation method, uniform analyzing tools and uniform investigation standards.In this paper, approach to Poter's five-force analysis, approach to Boston consulting group matrix, approach to linear-regression analysis, mathematical approach to cost-volume-profit analysis, and approach to SWOT analysis are combines to the credit investigation program. This method can help the customer managers of Hebei Branch of Agricultural Bank of China to calculate and predict the borrowers'future cash flow, and to analyze the borrowers generally and scientifically. Therefore, they can decide accurately the possibility of borrowers'returning the loans timely and completely, which can have positive directing function for preventing credit risks.After the empirical research and analysis of circulating fund of Hebei JS company, the following statement is concluded: in the situation that the present credit staff can not be adjusted in a large scale, the credit investigation program design of using the uniform credit investigation method, uniform analyzing tools and uniform investigation standards to form a uniform standardized credit investigation template is the most direct and most effective measure to prevent credit risks of Hebei Branch of Agricultural Bank of China.