Research On The Short-term Corporate Loan Credit Risk Analysis Method Of Bank Of East Asia Dalian Branch

Short-term Corporate Loan is one of the main sources of revenue for banks, and it is also the substantial part of banks' credit assets. Therefore, it is important for banks to minimize the credit risk of the credit assets. This dissertation aims to improve the credit risk analysis method of the corporate lending of the Bank of East Asia Dalian Branch (BEA Dalian).This dissertation is composed by four chapters. In Chapter I, the domestic and oversea studies of the credit risk analysis method are introduced, and the importance of the credit risk analysis method of the corporate lending is proposed. Chapter II is responsible to illustrate the current practice of BEA Dalian in this aspect. The shortcomings of the practice are brought forward in Chapter III. Chapter IV targets at the improvement of these shortcomings.The subject of this dissertation is to find the shortcomings of the current method of credit risk analysis of BEA Dalian and the resolution for the shortcomings.The inovation of this dissertation is shown as below:(1) In order to enhance the accuracy and exactness of MRA system to generate Borrower Grade and PD, it is suggested that the land use right should be classified as a kind of fixed assets, the outstanding in the accout receivable and account payable with the related parties should be classified as non-current assets and non-current liabilities during the financial data input.(2) In order to make the calculation of Corporate EL Calculator system to generate Facility Grade and EL% more objective, it is also advocated that LGD for properties on the land for the industrial purpose increases to 40% wihle that for those on the land for the commercial purpose is kept unchanged as at 35%.