Sanwa Bank Dalian Branch Of Foreign-funded Loans

Sanwa bank Dalian branch was a Japanese wholly invested branch founded in 1993. The branch has been conducting foreign currency business for joint ventures in Dalian district since it was established. The primary business of the branch includes: foreign currency deposit, foreign currency credit, I/E transaction settlement, and foreign currency exchange etc.The major credit services for joint ventures in Dalian branch are to finance them with various short-term loan and long-term project facility. The short- term loan for working capital accounts for the majority among the total credits. During the initial few years, the branch handled only a little credit businesses that were mainly short-term and long-term loan for big scale Japanese joint ventures. Since the year of 1996, due to the constant enhance of profit goal and the opening of the credit policy from H.Q., Dalian branch began to expand the credit scale and provided big amount credit for a lot ofjoint ventures from 1996 to the end of 1997. The most of the credits were short-term loan for working capital. Resulted from the problems of credit management, many overdue credits occurred from the end of the year 1997. The H.Q. ceased the credit authority to Dalian branch at the beginning of 1998. From that time, the credit business of Dalian branch was almost stopped, all of the related staffs were concentrated on the recovery of the overdue loans.By the means of case study, the thesis will study and analyze Sanwa bank抯 credit management system, credit policy and procedure in details, and thereafter we hope to make a conclusions of successful experiences and lessons we may use for reference in order to give suggestion for other banks with similar situation.