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Commercial Bank Credit Management Decision-making Model

Posted on:2003-09-21Degree:MasterType:Thesis
Country:ChinaCandidate:M L LiFull Text:PDF
GTID:2206360065456242Subject:Accounting
Abstract/Summary:PDF Full Text Request
With the development of the history of bank, the Credit Risk is always the important content in bank' s risk control, and Line of Credit is one of the important methods of risk management. Line of Credit mainly includes two levels: (1) Ascertaining the credit level of customers. (2) Calculating the credit sum to customers on the base of credit level.All of the banks have applied many methods of Line of Credit since the People' s Bank of China prescribed the methods of Authorization and Line of Credit for the present. But these methods are mainly about the first level. And because there are few theories to go by, most of these methods ascertain the credit level according to the past or present situation , then decide the credit sum to customers. Subjective factors are important during the whole courses. So it is necessary to take deep research to Line of Credit that will help banks with actual operates in management of Line of Credit.Firstly, this paper analyses the current methods of ascertaining the credit level to customers in banks and improves the methods. Secondly, this paper establishes the model of Line of Credit according to the synthetic abilities of repaying debts and operating cash. Finally, this paper discusses the methods of predicting operating cash using gray theory and gives a test to the model that establishing in this paper. All these will do good to the management of Line of Credit in banks.Now although there are many researches about the Line of Credit, most of them are qualitative and about the first level. The relevant quantitative researches are very scarce. So the theme is very significant to theoretical research and actual operating in banks.
Keywords/Search Tags:Credit risk, Ability of repaying debts, Line of Credit, Decision-making model
PDF Full Text Request
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