Research Of Dynamic Index System Of M Bank Based On Regional Differences And Industry Difference

With fast economic development nowadays, the trend of economic integration in both domestic and overseas has been reinforced. Behind rapidly economic development and prosperity, financial institutions act as important supporters and guarantors. As the executor of financial policies and behaviors, the bank takes its primarily function of balancing supply and demand of capital through transferring surplus capital to demanders in an effective and secure way, thus making secure capital transfer from deficient users to their efficient counterparts, which ultimately maximizes utilizing benefit and improves increased value of capital. With further opening up of policies in financial industry at present stage, commercial banks, cooperative banks and local banks are emerging and outlets of banks increasing domestically, resulting in intensifier competition among banks and severer situation of scientific assessment on credit extension business day by day, which has become a top issue with collective concern from banking industry.As regards to credit extension management, the node of assessing credit status and thereby improving loan quality is critical in credit extension business. An improper assessment on borrowers not only affects protecting creditor’s right, but also harms profitability and liquidity of the bank, or even causes operational problems to the bank. Therefore, in order to protect creditor’s right, bankers mainly rely on non-financial ratio factors, such as loan customers’credit, loan usage, repayment sources, creditor right protection and loan customers’prospect, and conduct research, analyzing, comprehensive assessment and weighing-up, and finally make decision on credit extension.Other non-financial factors of credit assessment in making credit extension decisions mainly include5Ps theory and5Cs theory. Based on all discussion above, the technical path of this article is:take M bank as example, refer to its currently internal credit extension system, import two adjusting variables, i.e. geographic scope and industry classification on the basis of its present credit extension practice in small and medium-sized enterprises, analyze banks’credit extension behavior that is influenced by different areas or industries through layering analytic method, thus calculate influential weighing value of each credit extension index, and set certain dynamic varying index according to the development and change of macro environment in each area or industry, finally form assessment model of dynamic credit extension to enterprises, then at last complete several management jobs of credit extension business with the aid of this model, and provide reference to application practice. Within above studies, how to assess borrowers’credit status scientifically, and thereby improve loan quality is the most important node. For this problem, the innovation points and contribution this article studies mainly lies in:(1) Achieve confirmation of index layering system and index weighing value in the assessment model of credit extension.(2) Achieve differential management of credit extension risk in different industries and areas, therefore giving reference to credit extension management.In conclusion, banking play a significant role in social and economic development, hence it proves to be common concern from every government to strengthen risk management of banking. From the bank’perspective, it is the key point of making success in fierce market competition to conduct business innovation and promote operation efficiency. To a certain extent, the credit extension system which is based on various areas and industries, as discussed in this article, resolves influence from different areas and industries in banks’credit extension system, and improves objective assessment on the quality of credit extension. Therefore, the study of this article provides much application value and realistic meanings.