Research On The Financial Appraisal In Credit Rating Of Chinese Listed Banks

Currently, in the impact of Internet banking, China’s bank performances have been affected in some degree. "Deposit Insurance" is published on March 31 in 2015, which breaks the status quo that the government assumes liabilities for the risk of bank failures for a long time, and from now there is a risk of default and due payment for banks. Meanwhile, in recent years, the government’s attitude is changing to risk treatment of state-owned institutions. In 2015, the Prime Minister Li Keqiang said for the first time, "we allow the case of financial risk, and treat the case according to the principles of the market liquidation." On April 2 in 2015, Baoding Tianwei Group declared bond defaults, and cannot bear the due debt, this is an event of default for the first time to the issuer that raises Public Offering Bond, and opening up financial market defaults precedent. There are indications that the market credit risk is an urgent need to notice, correspondingly, the reality and urgency of credit rating have reached to unprecedented heights.This paper focuses on the financial appraisal in credit rating of Chinese listed banks. The author has reviewed extensive literature on the research to clearly define the relevant concepts and put herself into practice. From current situation and financial characteristics of listed banks, she uses the method of combinations of dynamic indicators and static index to research on the financial appraisal based on the credit rating.The author reviews the literature, describes and analyzes the current situation and problems of China’s listed banks on the financial appraisal in credit rating, proposes the corresponding recommendations, and introduces the financial five forces model. In the model, it uses 16 listed banks in China as samples from 2012 to 2014. The financial five forces model includes five factors:operating capacity, profitability, liquidity, safety and growth ability. The author combines the model and AHP method, analyzes the interrelated financial indicators, comprehensively evaluate the system. Then we could get the credit rating of listed banks from the financial aspects. The result has positive meaning to financial appraisal, credit analysis and banks risk warning. The financial five forces model reflects that there is a negative correlation between the bank’s credit rating and risk, and the data reflects the level of financial risk, all this is precautionary and effective.This paper provides valuable advice for risk revelation, financial appraisal and credit management of banks, and gives decision-useful reference to investors.