An Analysis Of The Financial Strength Of China Merchants Bank Based On The Moody Financial Assessment System

The analysis of financial strength is an assessment of the possibility of a commercial bank's crisis,and an effective way to avoid commercial banks' crisis is to analyze and rank the bank's operating conditions and financial strength,and to find the bank in question as soon as possible.The corresponding use of solutions and preventive measures to minimize the risk caused by the bank crisis.In the study of financial strength analysis,the study of financial strength analysis methods,the study of index selection of financial strength analysis,and the effect evaluation after financial strength analysis are the main directions for researchers to analyze financial strength analysis.From the scope of financial strength analysis and research,we can see that the use of indicators in financial strength analysis is the core content of research,and it is the key issue affecting the weight of commercial banks'scorecards.The analysis of financial strength under Moody's financial evaluation system reflects that Moody's opinion on the financial strength given by a bank is independent of all other bank opinions currently assessed by Moody's.The Moody's valuation system does not measure the probability of repaying on time or the loss investors may suffer as a result of not paying within the prescribed time frame.In contrast,the Moody 's rating system measures the bank's ability to ask for help to avoid default.By using Moody's evaluation system to analyze the financial strength of commercial banks,we can draw the financial strength status of commercial banks and provide the regulatory basis for the banking regulatory authorities.Provide a basis for evaluating the safety of funds provided by commercial bank fund providers.For the commercial banks under evaluation,a good rating by an authoritative institution can effectively establish a stable image,make it easier to absorb deposits and raise capital at international and domestic capital markets and money markets at a relatively low cost.To gain a comparative advantage.Select China Merchants Bank,the first wholly-owned joint-stock commercial bank in China that owns shares by corporate entities.Through literature research methods to analyze the theory of financial strength,to find the innovation of the thesis.Through the research of five financial strength indicators of China Merchants Bank under Moody's system,the author draws the scorecard's weight of China Merchants Bank and evaluates the effect of bank's financial strength.Through the case studies,it is concluded that improving the financial strength of commercial banks should start from five aspects:improving core and continuous profitability,reducing liquidity risk,enhancing capital adequacy,strengthening business innovation capability,promoting financial innovation and improving assets quality.