The Research On Real Estate Demonstrations Of Loan Evaluation Project In Commercial Bank

Based on the innovation of the National Financial System, especially during opening of the Chinese financial market to the world after joining the WTO in 2001, foreign banks have gained better opportunities in China, pushing Chinese banks into an age of perfect competition. Loans are still the main source of income for Chinese commercial banks. Notably, it is also the largest source of income for the four major stat-owned banks in China.The loan evaluation is the chief procedure in banking loans which provides direct reference for the decision-making. It also plays a key role in the management after loan. The actual evaluation methods have many deficiencies which could reduce the reliability of evaluation. It is necessary to analyze the actual methods since the quality of the evaluation will decide the validity of the decision-making, the bank assets as well as the benefits. Thus, loan assessment method has a significant effort on the three areas ABOVE especially in improving Chinese banking management level and their competitive power.The thesis combines the improved DEA/AHP with the demonstrations, providing a brand new method for the future bank loan assessment and flow.The whole paper is composed of four parts:The first part is the discussion of theories regarding loan assessment methods. It is detailed analyzed on the mainly developed process of our country credit risk cognition and estimating method. It is expounded the credit risk appraises methods of three developed stages—planned economy period,planned commodity economy period and market economy period. And the difference of currently overall evaluation and risk degree calculating is pointed out.The second part is assessments of commercial banks' realty loan projects. Connection and difference of projects appraisal and feasibility study have been analyzed. Content and method have been expounded detailed of real estate loan projects appraisal currently in effect.The third part is introducing the methods which are used for estimating the project compared and elected. Firstly the improved DEA is introduced which added relations between weights to made the analysis more effective. Then AHP is introduced which is a method to combine the qualitative analysis with quantitative analysis. The author adopted the fundamental train of thought on apply the two methods.The last part is on demonstration research. The author is on the side of bank decision makers to analyze the project benefit and the corporation benefit, using improved DEA/AHP. Elect the more excellent project which being able to gain loan from the loan applying for real estate in the project. Finally, compared with the project gaining a loan in reality, it is pointed out that currently in effect evaluation system is rational or not. Given a countermeasure out suggestion, it is have been pointed out that looking into the distance studying a few in process is insufficient.