Determinants Of Commercial Bank Loans

Credit business is not only a traditional commercial banking business, but alsothe core business of commercial banks. In the foreseeable future it will still be thebusiness of the main sources of bank profits. For the commercial banks as creditors,the borrower can always have debt repayment uncertainties, which constitutes acommercial bank’s credit risk. As long as there are lending business, it will inevitablyaccompanied by credit risks. In order to reduce credit risks, commercial banks willfocus on the inspection and detailed information of target customers during the creditdecision-making process. Commercial bank credit and credit risk management hasbecome the hot issues in both theory and practice field. On this background, studyingon the behavior of china’s commercial bank’s credit decision making will do a greatbenefit to the improvement of the efficiency in credit decision making and the level ofdecision making, and will play a significant role in the improvement of bankoperation and the credit decision making system of china’s bank.This paper studies when the commercial bank face to so many kinds ofinformation with the borrowers, it how to identify, select, analyze and make use ofbank credit policies. Commercial bank credit risk management levels depends thequality of its credit assets. At present, the modern commercial banks are relying onboth financial and non-financial information to do credit decisions. This paper studiesthe relationship between some information and bank credit policies. The researchaims at finding out whether banks focus on information, what type of informationthey pay most attention to, whether the bank credit is rational and how is theimplementation of the bank credit evaluation system. In this paper, we select a branchof large state-owned commercial bank corporate loans data samples in December31,2013as the research object. We reference to the results of previous studies andprevious literature, as well as their understanding and research interest on bank creditdecision problem, select a number of representative elements, and established aresearch model for commercial bank credit decisions and the relationship betweenthese elements. We will find which factors played a key role and influence in theprocess of decision-making behavior of bank credit by the empirical analysis oflogistic regression, and advance for the conclusions and the suggestions.This research on commercial bank credit loan not only benefits for commercialbank credit system, but also provides useful references for fund-lacking enterprisesand the development of the credit market. It has real value and is of strategicsignificance.