Analysis Of HY Power Credit Decision Making Based On Harvard Analysis Framework

Currently,under the pressure of China's economic downturn,the quality of banking assets declined,the bank credit risk continues to increase.Throughout the current China's financial markets,the scale has been very large,the rapid expansion of the banking sector makes the competition between banks more and more intense,the profitability of the bank decline.The credit business income as the main source of profit for banks,which plays a vital role in the bank's survival and development,how to ensure the bank's credit business income,at the same time as far as possible to reduce the risk of bank credit,is a major issue to the banks.The current level of credit risk management of commercial banks in China is not very high in the credit practice,the credit personnel financial analysis to customers is generally simple,mechanical analysis method,which is not conducive to the bank credit risk management.In view of this,this paper introduces the Harvard analysis framework,the framework for strategic navigation as a starting point,through to the enterprise accounting analysis,financial analysis and prospect analysis,understand the business situation from many aspects,financial situation and development prospects,and better for the bank credit risk management services.In this paper,based on the relevant literature,theoretical basis and financial analysis methods,the paper uses the case analysis method,based on the Harvard Analysis Framework for the demonstration of HY power credit decision-making financial analysis.The case part of strategic analysis,accounting analysis of HY power analysis,analysis and prospects of the financial strategic analysis is mainly through the PEST analysis,SWOT analysis of the industry environment of the macro environment,the development prospect of HY power,a series of analysis,is conducive to the comprehensive understanding of the enterprise;Through the analysis of the important accounting policies of HY electric power,the judgment of accounting estimate and the comparison with the same industry,the accounting analysis is to analyze whether the accounting standards and the industry practice are analyzed;Financial analysis is from solvency,profitability,operating capacity and growth ability of the four aspects of HY power analysis;The prospect analysis is to predict the HY power through two aspects: qualitative and quantitative.Through the above analysis,HY power industry has development potential,prospects,HY is not the power abuse of accounting policy,the behavior of accounting estimates,there is no significant risk,but its poor financial situation,the main business profit and loss,weakness,but due to some advantages of its own existence,stability and good credit status therefore,final conclusions are given to the bank loans,but also pay attention to reduce the credit risk.Finally,the paper gives some suggestions to the bank credit staff,hoping to bring some new ideas to the bank credit.