Project Assessment Methods Research On Commercial Bank Loan

With the rapid economic development and the increased competition of the banking sector, the credit scale of China’s commercial banks continues to increase. Project evaluation which decides whether to provide direct reference is a priority procedure to commercial bank loan. It plays a pivotal role in business decision-making and risk management in the banks, so commercial banks must be given adequate attention to it. Commercialization of China’s commercial banks is in the slower development stage compared with western countries. In recent years, the rapid development of economy and an increase of the number of enterprises investment opportunities make the types and numbers of investment projects more and more, so the quality and level of loan project assessment are much more important; Meanwhile, investors, financiers and the ways are all showing the main tendency of diversification, focusing on assessment methods and contents are different. These would bring new demands and challenges to commercial bank loan project assessment. There are still a lot of shortcomings, especially in the construction of loan evaluation system and methods, which would cause a potential threat to the credit risk of commercial banks, and affect the normal operation and management of commercial banks.According to the development of the situation, this paper analyzes evaluation system and methods of loan project based on extensive literature review and systematic analysis, and efforts to build a new loan project evaluation index system, and applies the system to Z meat company’s pig slaughtering project loan of N Bank. Z meat company’s pig slaughtering project loan of N Bank was assessed as normal level, but the progress of the project showed the deviation of N Bank loan project evaluation decisions gradually. This paper takes the deviation of N Bank decisions as a starting point, and usefully proves the improved loan project evaluation index system practical, accurate and operational, and puts forward some suggestions, which has a certain reference value and guiding significance to improve the loan project evaluation system of China’s commercial banks to reduce and manage the credit risk.The specific content of this paper consists of the following seven parts:Part one is the introduction; Part two describes the contents and methods of project evaluation of commercial bank loan, and focuses on the analysis of the shortcomings of existing; Next, through improving the deficiencies of the existing assessment, the author has constructed the new appraisal index evaluation system of the commercial bank loan project, and specifically described the theoretical basis of the system; The fourth part is an overview of the case, which selects Z pig slaughtering company loan program evaluation case; Part five carries on the case to the new evaluation system, and draws a comprehensive evaluation result; Part six is conclusion and proposals which make commercial bank loan project evaluation system perfect; Part seven is thinking of the full text and prospect.