Comprehensive Evaluation Of The Commercial Banks Shipbuilding Advance Payment Guarantee Credit Project

As an industry intensive with capital, technology and labor, ship-building industry contributes a lot to employment and relates closely to other industries. The healthy development of ship-building industry can play a very important role in promoting national economy and stabilizing employment. With the accelerating integration of the world economy, the world ship-building center has transferred to China and other nations which have low building costs. Meanwhile, the world ship market is entering into its peak time. Therefore, China's ship-building industry is now confronted with special development opportunity.At present, bank guarantee is the largest demand among financial products for ship-building companies. However, advance payment guarantee for ship finance has problems such as large amount credit, many participants in ship-building project, the complicated process, the specific evaluation of risk profit and the risk control difficulties, all of which become major obstacles for banks to provide ship-building finance. Therefore, a scientific, comprehensive and systematic evaluation of ship-building advance payment guarantee is meaningful to the development of bank services and mutual benefits of both banks and ship-building companies.Based on in-depth understanding of the ship-building industry and the risk evaluation and management issue for bank credit business, this essay uses project evaluation methods to evaluate the risk profit of ship-building advance payment guarantee. The main content of this essay includes four parts as below:The first part is a description of the great development opportunities and finance bottleneck for China's ship-building industries under the trends of world economy integration, the transfer of world shipbuilding center and the peak time of international vessel market;The second part is an introduction of the major theories and methods for project evaluation used in this essay;The third part is an analysis of the ship-building advance payment guarantee from multiple aspects such as industry risks, credit party, related companies and the inherent risks of ship-building projects. On the basis of this analysis, this essay employs mathematics model to make quantitative evaluation of risks so as to give overall risk appraisal for ship-building guarantee; Finally, as summary, this essay put forwards some advices for banks to monitor advance payment proceeds.