Credit Risk Assessment And Control Of Bank Of China To Universities In Jilin Province

Speaking of the commercial banks, universities are some special customer communities, which have their public welfare nature obviously. The country's insufficient investment to the need of higher education caused a sharp contradictory between the increasing need of higher education and the insufficiency of educational resources. The university loan was a production of this contradictory. Commercial banks, in order to secure the safety of credit assets, should carry on the risk assessment and the control to the borrowers; however, the university level customers and the traditional industrial and commercial users are various, therefore, there is no perfect evaluation system and it is difficult to appraise their credit capacity scientifically.This thesis analyzes the customer credits of the higher education class customers, elaborates with emphasis that how the commercial banks should appraise and analyze the risk of higher education class customers, and adopts the quantitative assessment to replace the qualitative assessment previously. By doing so, it will help to quantitate the credit risk and put the risk control in a controllable scope.This thesis consists of six chapters:The first chapter focuses on background of this thesis and proposes the research organization, the research content and the research significance.The second chapter elaborates the overall situation of loan of the universities in Jilin Province from the perspective of the reasons, statues and features of the universities loan.The higher education customers may be divided into four kinds: public normal university, public institute, independent institute and private college. Based on the risk preference, the credits for the public normal universities is the key point of the credit policy of the commercial banks. Their credit policy for other kinds of universities is more cautious.The third chapter is an introduction of the situation of Bank of China to credit the universities in Jilin Province and an analysis from four aspects: asset quality, customer credit level, guarantee method and the level of interest rate pricing. The analysis indicated that the university level customers have no non-performing loans and their credit level also maintains good. The corresponding guarantee method usually is warranty and their level of interest rate pricing is low. These are all the features of quality customers of banks, which means their credit risk is small and meanwhile, their income is low.The fourth chapter introduces the major risks of university loans. This chapter also covers the topics of the policy-type risk, the guarantee legal risk, the financial risk, the competition risk, the risk of the deadline and the application of the loan, the risk of loan management, etc. The university loan is granted usually in the form of project loan. The project compliance, the total investment and the capitalization interest expense can all influence the repay of the bank loan.The fifth chapter deals with the university financial system, tries to establish and then evaluate a model of university solvency by analyzing the specific financial data.In order to establish the model, this thesis first counts the external liabilities, including the bank loan; the staff raised funds and the Project debt etc. Then this thesis calculates the debt need to be repaid annually (short-term loan equals). After that, the calculation of the repayments sources including the balance of payments, Self-financing infrastructure and the financial account deposit should be done. The sixth chapter proposes the control measures of credit risks of university loan, which includes seven aspects such as the prevention of policy risk, the careful selection of credit objects, the reasonable size and duration of credit.This chapter also proposes the university debt melt measure: The provincial government should take financial investment as a forerunner, comb the education profession policy comprehensively, and conform of higher education resources. Depending on the exterior marketability operation and the internal storage quantity adjustment, the exploration form including the debt fund, the syndicate loan, the property securitization, trust managing finances and so on many kinds of product synthesis financing plans, impels the province is the university debt reorganization work positively.