Commercial Bank Corporate Customer Credit Business Review Discussion

Credit management means that banks approve and give loans or credit to customers and get interests back. This business includes loans, honor, guarantee, credit and discount, etc. During these procedures, the bank is the medium that is subject to the risk. It collects money from the market and gives loans to its customers. In the end, the bank collects back the principal and interests.Credit management is not only a profit-making business but also a kind of high-risk business to commercial banks. If the credit risk is out of control, it will lead to loss of money and affect the money-withdrawal from saving accounts. Even worse, it will lead to bankruptcy. Therefore the credit management becomes more and more important. Even though loan-risk control should be applied in every stage during the credit management. But from abroad experiences, the control before issuing the loan is more effective. So we should discuss how to investigate the enterprises before approving their loan.This article systematically discusses the principles and methods of commercial banks` investigation about its customers. It consists of three parts:Part one: Why is investigation necessary during credit management? 1.Analasis of the assets status of commercial banks especially the status of Chinese commercial banks. This part mainly analyzes the credit assets quality of the four state-owned commercial banks. 2.Investigation is a important step to improve the quality of loan assets; 3.What are the difficulties in investigation? Why banks need to find a scientific customer investigation system? 4.principles of credit business investigation(1)General principles of loan management. These principles are the same as Bank operation management Principles---Security, profit-making , fluent.(2)Concrete principles of credit management-Five c"s:Character , Capacity,Capital,Collateral,Condition.(3)Roger Hale credit 18 principles Part Two: Present Investigation methods of Chinese commercial banks 1.customers` credit level. It includes environment, financial status and management level, etc.2. Credit volume. This part introduces the basic method of how to estimate the customers` credit control volume and demand volume.This part Analyzes through practical cases to illustrate how to judge its customers and approve the loans.Part Three: Research on special problems of credit business investigation1.How to make use of cash flow sheet to get credit status of customers.2.Loan pricing. It means how to calculate the loan interest. This part introduces the main loan pricing methods in abroad and give suggestions about loan pricing.3.How to analyze customers` corporation governance structure.