The Consideration On The Problem And The Countermeasures Of Credit Granting In Due Diligence Of A Bank

Risk management of the granting credit is an important part of banking business management when the banks operate. Credit granting management is an important means for banks to control risks. The correct decisions of the credit management will directly affect the degree of the bank credit risk, and they will also affect the stability, survival and development of banks. To consider the main following questions, The credit issues in the due diligence of A Bank are selected to study in this paper. A Bank, the predecessor is A Rural Credit Cooperatives. For a long time, there are some problems in credit management in the rural financial institutions. Credit management is the key link to control credit risk, so it is deemed the most important part of risk management. After A Rural Credit Cooperatives have been restructured to be a commercial bank, it got a rapid development in most aspects. But it still uses the traditional way in credit management. The weakness is still risk controlling as well. It is significant to think how to balance the rapid development of business and improve the quality and level of risk management. In summary, I get some of the references of previous researches and use certain credit cases in the practical work as an example to analyze. I hoped to be helpful for future work when carrying out the existing problems and countermeasures and researching credit due diligence work. Specifically, the discussions will be elaborating in several points of view.Firstly, this paper wants to research the status quo of China’s rural commercial bank credit and credit management and causes. Nowadays, there is a large proportion of the credit business in the domestic commercial banking operations. The difference between lending business and deposit business is still a major part of the domestic commercial banks’profitability. Therefore, the quality of credit assets is directly related to the profitability of the banks and the long-term development of credit. Credit management has become the top priority of the management of commercial banks. Secondly, there is a major problem in the credit work of A Bank when the author analyzes the credit management of A Bank compare with domestic rural commercial banks.Thirdly, the author selects several loan cases in the work and analyzes the reasons of A Bank credit due diligence work in detail. It will be helpful to provide a reference for future business development.Fourthly, according to the results of case studies, how to find countermeasures to improve the credit quality of the due diligence work which is based on my own understanding and views is answered.In this paper, combined with the actual work content, the author selects some cases during my work experience as a customer relationship manager in A Bank branch in2010-2012. Personal loans for business and small business working capital loans are used as example. In case to protect the customer information, some of the key terms are hidden. These cases of credit problems due diligence analysis are aimed to combine the results of previous studies and later actual operation. However, because of my shallowness of knowledge and lack of experience, there are many deficiencies in this paper. Criticism and advices from you experts and scholars will be appreciated. Thank you very much for your examining and appraising.