Commercial Bank Customer Credit Decisions

Currently, loan is still the major asset business of Chinese commercial banks. Loan interest income still accounts for a large proportion in their total income , which leads to high dependence on loan interest. Corporate loans are the biggest part and therefore become the major profit source of Chinese commercial banks, at the same time corporate loans are also the key area for risk management. This situation will last for a relatively long period time. Therefore, scientific credit decisions , especially those on corporate clients, are very important.Credit approval is the final decision step before the funding of the loan and the also the final pre-funding risk control point in the whole credit business process, therefore it is the starting point of both credit risk and credit revenue. The right credit decision directly determines the rcalization of the banks' operational profit. Credit approver is a new position in Chinese commercial banks. Many problems such as incomplete decision-making process, mere qualitative analysis in the evaluation process, no record of evaluation process and no measurable, practical and operationable decision-making tools exist in the credit decision-making process.In the light of the whole credit approval process, this paper analyzes each decision-making points and aims to improve the process so as to ensure the operational efficiency of the commercial banks by combining the qualitative and quantitative analysis and developing a set of solid, practical credit decision-making system .Innovation points of the paper lies in five aspects. First, to add the assessment on the information provider and creditability of the information and improve decision making process; Second, to conduct a complete analysis of the decision-making process of the new credit approver position and design a set of complete process and a tool mix instead of study on a single tool; Third, to introduce obscure math assessment method, realize the quantified assessment compared to the traditional mere qualitative...