Impact Of Financial Situation Of Public-listed Companies On The Credit Decision-making Of Commercial Banks In China

Commercial Banks as the core of the financial system, plays an indispensable role in the economic operation. The credit business is the traditional core business of commercial Banks, is also one of the main profit source of commercial Banks. Banks in order to ensure the safety of borrowing money, must carry on the strict examination of borrowers’ credit, choose high quality clients, and make a rational lending decisions. Although early introduced a series of reform measures in our country to promote commercial Banks non-performing assets ratio from25%to0.94%by early2012at the end of2002, but since2012, non-performing loans deteriorate. According to the China banking regulatory commission (CBRC) banking operation report, commercial Banks non-performing loan balance reached492.9billion yuan by the end of the fourth quarter of2012, has five consecutive quarter in the rebound state. This shows that the quality of credit assets of commercial Banks in China still exist hidden dangers.Therefore, in order to reduce the loan default, control the bank credit risk, Banks need to supervise the enterprise to make certain whether the enterprise can timely loan repayment by investigating enterprise’s financial condition, business activities, In numerous information assessment, enterprise’s financial indicators for the commercial bank loan decision-making plays an important role. And the listed company represents the development situation of our country enterprise, given the importance of the listed companies and the availability of data, this article through the financial indicators of listed companies multi-angle, analysis determine its impact on bank credit decisions. Specifically the article discuss from the financial indicators of listed company of commercial Banks credit or not, the influence of the loan size and type, etc. Through empirical research, this paper can examine the commercial Banks in lending decisions are scientific and rational, and can reflect the commercial Banks to loan approval decisions focus on financial indicators of the listed company’s financial characteristics of and access to loans. Finally, according to the results of empirical analysis, starting from the reality of commercial bank, the credit decision-making, we put forward some policy Suggestions on risk control.The central bank benchmark interest rate is relatively stable from2008to2009, so this article uses the listed company who success won the commercial bank loans as the sample data. At the same time, this paper adopt the main financial ratios which Banks often use to measure the company’s financial situation, mainly including debt paying ability, profit ability, growth ability, operation ability, the earnings quality five categories of financial indicators data. In this paper, by using logistic regression and least squares regression method to do empirical correlation, the whole process using SPSS16.0analysis, and it reflects the problem to make the corresponding policy recommendations. Therefore, empirical research mainly divides into three parts, the first part of article is that commercial bank credit or not were studied with Logistic decision-making and the correlation of the listed company’s financial situation. The second part use the OLS regression analysis, the short-and long-term loans and financial conditions of relevant empirical research; The third part is still using OLS regression analysis, both short-term and long-term loan type whether financial condition.Finally, the empirical results show that the commercial Banks are weather or not lending decisions and the financial status of listed companies do not exist significant correlation, but the size of the loan and financial condition has a significant correlation, compared to the long-term loans, short-term loans and loan scale has greater significance. In addition, on the loan type, credit borrowing stronger sensitivity to the financial situation, and guarantee the borrowing class (guarantee, mortgage loans)and financial situation is not very significant correlation. This is different to the conclusions that the types of loans and financial situation is no significant correlation by Hu Yiming (2006).At the same time, through the empirical results, we also found that the commercial Banks in the short term loan approval ignored the borrower operation ability of financial indicators analysis,; in the long-term loans, commercial bank pay little attention to the profitability indicators of the listed companies. On this basis, we from the perspective of commercial bank credit system, put forward some Suggestions.This have certain reference significance for the perfection of the credit markets.