Current Situation Of Financial Statement Analysis And Improving Measures Of S Commercial Bank Credit Policy

All statemeCredit risk management is the development of commercial banksthroughout the course of an eternal theme, only the good credit risk management,commercial banking was possible to achieve considerable and steady development.As the lifeblood of credit risk management and credit decision-making in the moderncommercial bank operating in the position is self-evident. How scientific and rationalconduct credit decisions, commercial banks have been studied in depth the importantissue.At present, China ’s various types of credit technology, based on the financialstatements of the credit technology and relational credit system construction arerelatively mature technologies. As a commercial bank when making credit decisions,rely mainly on two main lines, based on the financial statements of the credittechnology mainly refers to banks by means of the Borrower ’s financial statementsreflect the financial information and make loan conditions and loan originationdecision-making, financial statement analysis is more focused on quantitativeanalysis. The relational technology is mainly refers to credit-based long-term,multi-channel bank and through contact with the accumulation of a borrowingcompany and its executives regarding the information to make credit decisions, it ismore focused on qualitative analysis. Compared to both, based on financial statementanalysis more objective credit analysis techniques specific. And in most cases, thecredit technology as a relational tangible basis for further understanding and investigation pointed out the direction. Visible, financial statement analysis in thecredit decision-making plays a dominant role, is to determine whether a loanpayment, repayment plan how to develop, implement necessary precondition whichloans and credit management requirements such as a series of important basis fordecision. Therefore, a comprehensive and detailed analysis of the financialstatements in the modern commercial bank credit decision is particularly important.S commercial banks as one of the four major commercial banks, after a longperiod of rough mad and aggressive business development, deep insight into thefinancial statements: a modern commercial bank credit assessment sources, only inpractice, constantly credit practitioners to improve credit analysis of financialstatements and application capabilities in order to better ensure the safety of creditassets, thereby protecting the bank efficient and stable operation. Therefore, Soperators of commercial banks on the financial statement analysis has attached greatimportance, in terms of consistent lending decisions more cautious, making financialstatements based on banks’ internal credit analysis method has been steadydevelopment. And in the long course of business, the accumulation of a large creditexperience, establish a set of related analysis and survey methods.As the author of an ordinary commercial bank credit department investigators,after the daily practical work found that existing theory is relatively complete, but theanalysis method is not perfect. With one hand, the continuous development of marketeconomy, financial reform after another, financial statement analysis method is alsochanging the current limitations of analytical methods increasingly revealed beyonddoubt. On the other hand, bank credit employing professional quality varies greatly,resulting in credit decisions in financint analysis often tends to be modeled, even inform than content, in order to analyze and analysis and other metaphysical questions.Based on the above, the author of the work in the S commercial bank personalexperience, trying to investigators from the perspective of the credit, first S commercial bank credit decision status quo of financial statement analysis, combinedwith the credit decisions of financial analysis objectives and methods of the analysisof the balance sheet, income statement analysis, cash flow analysis, and the analysisof financial indicators used in simple terms introduction.Thus summarized extract of the S commercial bank current financial statementanalysis two shortcomings: First, the review of the financial statements ofauthenticity formality. S Commercial bank credit decisions in financial statementanalysis are based on corporate financial statements give a true and objectiveassumptions made. The corporate financial statements are true, then simply rely onaccounting firms, trust companies on the borrower, and not too many othersecondary screening tool. So once the financial statements themselves untrue ordeliberately through the whitewash, more scientific and efficient method of analysisis meaningless. Second, the sustainability of financial data analysis is toostreamlined, simplified, not completely objective responses borrowing company’sfuture period of practical development. S commercial banks existing financialanalysis methods are based on historical cost principle, namely the establishment of "historical inevitability of future extension " carried out under the assumption thatthere is a significant lag of financial information and a strong short-term. Forexample, as enterprises in the past few years on a large scale disposal of fixed assets,it is reflected in the financial statements present the operations and future prospectsare likely to make much better than the actual business development.As mentioned above, in order to improve the S commercial banks havetraditionally financial statement analysis methods to improve the quality of its creditdecisions, the author from S Commercial Bank status quo of financial statementanalysis, gives the corresponding improvement measures: the introduction of thefinancial statements of the major articulation the audit report authenticity solveproblems; introduction of cash flow analysis, financial statements to solve the issue of sustainability.Finally, the author cited the S commercial banks are exposed to the actual workof the two cases, respectively, illustrate the introduction of articulation audit andpractical significance of cash flow analysis and operability. Article dominated the firstcase, the selected commercial banks within its jurisdiction the S a pharmaceuticalindustry clients, according to the S commercial banks existing analytical methods acomplete analysis of the actual work to restore the investigation report on thefinancial statements of the original, drawn findings. Then the introduction of cashflow analysis, evaluation again, come to the Borrower’s financial comprehensiveevaluation results. By comparison, the description of the introduction of cash flowanalysis theory in analyzing the financial statements of the importance of financialsustainability. The second case focus on the introduction of articulation analysismethod described in solving the authenticity of the contribution of the financialstatements. Through the above analysis of the case, and strive to improve the existinginadequacies of analytical methods to design a set S of commercial bank credit tomeet the needs of a more comprehensive system of financial statement analysis.