Research Of Companies' Credit Line Based On The RAROC Model Of DZ Bank

Credit service as the core business of commercial banks,is the fundamental source of bank profits.The approving of credit line is most important link of credit management.The proper scale of credit is not only the endurance of bank profits,but also the prerequisite of risk Management.In the credit management of DZ bank,the experts' judgments are the main basis to measure the credit line.It references the financial data and the managing information,combined with financing demand of company,can give us a roughly credit line.This method relies on experts' experience,and interfered by human factors a lot.That can mistaken our judgment in incomplete information situation,and deteriorate the operation of DZ bank.Meanwhile,the determination of credit line is the first step of credit service between banks and companies.How to identify and satisfy the real financial demand of companies,based on the maximization of economic returns of banks,are very important to the bank development.Therefore,it is urgent to researching the determination of DZ bank's credit line.This article will use methods of literature research,case analysis and investigation,research credit line's management of DZ bank deeply.We expect to improve the credit management system,based on risk measurement and risk adjusted return on capital.It can help us to getting the targets of refine management of credit and the maximization of the economic returns of DZ bank.Through the research of the article,we create the RAROC credit line model of DZ bank,and prove it's practicability in the real credit service.We also offer proposals like establishing the strategic development target,improving the risk management system,establishing a scientific assessment mechanism,construction of learning organization,optimizing the approval process of credit and strengthening department cooperation.Using these methods,DZ bank can make sure that the RAROC credit line model and the RAROC management philosophy will be well carried out.