City Commercial Bank Customer Credit Evaluation Of The Issues Discussed

With our country's coustant fulfillment of the commitment during its entering WTO , the banking in our country will meet great opportunities and challenges.Some article has revealed that the business of deposit and credit account for about 95 percent of the totai banking business. And its management conditions have great association with the credibility of the customers. However, there has not been relatively authoritative credit rating establishment in our country and the idea of credibility has not been ropted in the mentality of the people.Therefore, it is urgent for the commercial bank to establish a set of scientific credit rating system.Based on the commercial bank in Hohhot, the passage appreciate the credit rating index system in the city from the angle of managing financial affairs.The establishment of the system complies with the following principles: l>cash is the source of serving the loan; 2>To combine the maco-economic analysis with the trade analysis; 3>To link financial analysis with non-financial analysis.The evaluated object is classified into two kinds:evaluation of projects and evaluation of enterprises.And the latter one can be further subdivided into two kinds:evaluation of new customers who haven't established any business relationships and that of regular customers who have.Basic indexes and corrective ones are set up to accurately appreciate customers' abilities as the foiling: l>ability to honour agreement (referring to the customers with whom the bank have developed business relations); 2>ability to manage the enterprices; 3>ability to gain profit; 4>ability to serve debts.And the customers' financial conditions will be graded and rated so that the bank can decide whether they will grant the credit or not.Combined with the customers' inside and outside surroundings, appreciate indexes are set up to pass a qualitative judgement on them, making a comprehensive estimation.