Guangzhou Rural Commercial Bank M&A Loan Risk Management

Commercial bank M&A loan refers to the commercial bank for enterprise mergers and acquisitions or its subsidiaries to pay for M&A transactions required for the loan funds.M&A market and the rapid development of the birth of the M&A loan products,which have promoted the development of M&A transactions,a new profit point for commercial banks.M&A loan business is more common in developed countries.In China,in order to reduce banking risks,M&A loan business is prohibited in principle.Until 2008,the CBRC issued the Guidelines on Risk Management of M&A Loans for Commercial Banks,which is justifiable..The majority of commercial banks do not have experience in the review,risk assessment,loan contract terms and post-loan management of the more strange.In the early stage of business development,in the absence of practical experience,it is difficult to evaluate and control its risk effectively,which can easily lead to the production of non-performing assets.In addition,it is necessary for the banks to operate with a bank To risk.In practice,it is urgent to put forward the risk management of M&A loans of commercial banks,in order to reduce the risks of M&A loans and achieve the goal of increasing the value of bank assets.In this paper,from Guangzhou Rural Commercial Bank Co.,Ltd.(hereinafter referred to as the Guangzhou Rural Commercial Bank)the practice of M&A loans,on how to reduce the risk of mergers and acquisitions of Guangzhou Rural Commercial Bank were discussed.Guangzhou Rural Commercial Bank's previous business is confined to mortgage loans,rural microcredit loans,real estate loans,never involving mergers and acquisitions loans,with the process of urbanization and the Guangzhou Rural Commercial Bank's own development needs in recent years involved in mergers and acquisitions loans,but its M&A loans risk management situation is worrying,the risk of prevention and control is very weak,the entire asset quality has brought great security risks,do not improve the Guangzhou Rural Commercial Bank M&A loan control of wind control,and rush to carry out mergers and acquisitions loans business,more harm than good.Only to solve the risk problem,Guangzhou Rural Commercial Bank in the M&A loan business,reduce risk,innovative financial products,improve profitability,so as to enhance their overall strength.This paper analyzes the political,economic and social environment and technical conditions of M&A loans of Guangzhou Rural Commercial Banks by the methods of PEST,SWOT and case analysis.It also analyzes the advantages and disadvantages,opportunities and threats of M&A loan business Analyzes its main problems,analyzes the reasons,and makes the management aware of the importance and urgency of risk prevention and control of M&A loans.In this paper,the risk management model,process and method are discussed in this paper.To strengthen risk prevention and control.At the same time,the author also put forward a series of feasible suggestions and measures,such as scientifically selecting target projects and target enterprises,supervising loan funds,accurately assessing M&A loan risk,perfecting internal control of banks,building professional management team and strengthening legal risk prevention.Guangzhou Rural Commercial Bank and other commercial banks M&A loans risk management,play a guiding role,and improve its risk management level,to ensure its sound operation.