On The Reform Of Government Institutions And Political Reform And Economic Reform

With the advent of Chinas access to WTO, banking industry in China will undoubtedly confront with unprecedented fierce competition. How to be competent to ~he historic occasion by means of deepening refrom, emancipating the management concepts, enhancing adminastrative level and improving credit loan quality have become a pressing issue for the whole banking system. The quality of credit claim is signficant for the commercial bank's safty and prosperity, as well as the banking stability. Obviously, the endeavor to perfect the pattern of credit management, improve credit capital quality and hedge against risks are dominant tasks at present. The commercial banks need to practise a principle of quantitative and qualitative analysis when enquiring the credit rating and status about the prospective credit receiver. Unfortunately, the accounting system is still far from standardination so that it is not rare to detect the loanborrower submit disintegrated or forged acounting statement. For instance, some companies attempt to dodge tax or provide fake balance sheet to cheat bank of credit. The unreliable accounting information result in difficulties when scrutinizing the company 's operating activities merely from financial statement, and the extra ?financial condition factors turn out to be much more prominant. In order to cope with the existing problems above, this article will focus on two subjects, that is, how to develop the qualitative analysis for credit loan, and how to efficiently hedge against latent creait risks. On one hand, from the decision maker of credit lending's view, they must unswervingly implement a dialectical logic and a broad vision to grasp the major aspect of the problem throughout extensive analysis from macrocosm to microcosm. On the other hand, as for the enterprises themselves, it's imperative for them to flexsibly tap their potential, utilize their own resources to adapt to the external changes, As a result, the credit management personnel should not only concentrate on the companies financial stutus, but be required to research the government guide ?line, the industrial growing trend, and learn the rich experience from the commercial banks of western countries. Thus, the domestic commercial banks can stand on a historic height to judge enterprises operating leverage and potential business outlook with a profound point of view. The article also present sound exposition to stress the importance of using qualitative analysis, and introduce the approaches to better utilize credit ?management against credit risks. This article well integrate Macroeconomics, Marketing and Enterprise Management Strategy into rich practical experience and determine to accompolish credit management successfully. This article comprises four parts: Part One gives a brief analysis of the reasons for depriving the bad financial claim based on operating activites of a branch of Agricultural Bank of China, thenthis passage list several questions relating to prevent any new bad loans. Part Two mainly illustrate the extra ?enterprise?s factors affecting credit management risks of commercial banks. Through specific business cases, it demostrates the factors having impact on companies adminastration and progress, such as government interference, industrial fluctuation, up ?dating and up ?grading of products, and business expectation. Then, it points out banking have to carefully sc...