Margin Business Customers In Credit Research And Practice

This paper firstly introduces the margin borrowing business, which is the background and application environment of this research. After that, this paper analyzes the difference of it and ordinary brokerage business. It is the unique characteristics of the business require a more accurate customer credit rating strategy.Next, this paper makes an introduction of the domestic customer credit rating status, in particular the status within banking industry. Then, by analyzing the difference between margin borrowing business and banking business, and the advantage of the former in term of data preparation, I described the feasibility of a more accurate rating strategy.With the theory research, this paper will firstly show how to analyze the customers, how to classify and how to rate them. Then, with the rate, this paper describe how to make the credit limit in order to avoid risk, how to decide the fee and interest rate in order to compensate the risk and how to determine the guaranty rate in order to control the risk.Finally, this paper uses the real customer transaction data for the empirical analysis to verify some index of the strategy.In a summary, this paper answers for the urgent need of securities companies when carrying out margin borrowing business. Compared with the subjective strategy, the one here can better avoid risk, compensate risk and control risk.