Research On The Risk Evaluation In The Annexation Loan Of Industrial Bank

With the continuous development of China's economic size and strength,unreasonable industrial structure and low industrial concentration has gradually being a new problem.The annexation between enterprises is one of the most important measures for this problem.With the national policy vigorously supporting,it plays a good role in promoting for the market.However,the annexation will need a lot of money.It is difficult for firms relying on themselves.Thus,the help of commercial bank loans is needed to realize the annexation,which provides a good opportunity to be the important participation in the annexation of commercial Banks.Industrial Bank,as one of the domestic commercial Banks,has developed m&a business.But due to the complexity of m&a loan than other varieties,high risk control,risk throughout the whole process of m&a loan,good risk control becomes the key to the bank for m&a loan business.Thus making a further analysis of m&a loan business risk and achieving the effective management,is of great significance for the improvement the level of Industrial Bank,even all commercial Banks risk management level.This paper takes the m&a loan business of Industrial Bank as the research background based on "commercial bank m&a loan risk management guidelines" and the basis of related literature.First of all,identifying the potential risk factors in the m&a loan business,then making a risk classification,building the m&a loan risk evaluation index system,and building a evaluation model based on gray clustering and Analytic Hierarchy Process to realize the risk evaluation of the m&a.Then,the related result analysis will be made.In the end,case study is made about the corporate merger and acquisition of Jizhong Energy Group and North China Pharmaceutical Group,which identifies the applicability and scientificity of the evaluation model,and makes the valuable advice for the bank.This study will provide an operational model for Industrial Bank.