Research On Credit Default Risk Of Min Sheng Bank

This paper studies the credit default risk of Minsheng Bank since 2008 and the key factors affecting the credit risk of Minsheng Bank.In the environment of globalization of economic development,the financial risks in the international market have the characteristics of wide spread,fast transmission and great harm.China's commercial banks are also inevitably exposed to the financial fluctuations in the international market.The role of commercial banks in the economic field is very important,once the crisis may affect the development of our economy,it is more likely to cause public panic.Based on the quantitative analysis of the KMV model with high applicability,this paper concludes that the default distance of Minsheng Bank has been increasing since 2008,and the default probability value has decreased to a lower level.The results of linear regression analysis show that the factors that are more relevant to Minsheng Bank's credit default distance are as follows: capital adequacy ratio,asset size,interest income ratio,non-performing loan ratio,cash flow debt ratio.This paper proposes the following suggestions: first,by improving the internal financing methods of retained earnings and adjusting dividend policy,applying for national government funding and external financing methods of policy support or issuing long-term bonds.Health Low-risk high-weight business and the development of intermediate business proportion to adjust the operating structure way to improve the capital adequacy ratio.The second is to strengthen the qualification audit before credit management,pay attention to and establish the corresponding loan protection mechanism,talent training and independent mechanism to reduce the credit risk of people's livelihood.Finally,by adjusting the deposit and loan interest rate to enhance the ability to absorb deposits to increase interest income.Through the above three aspects of regulation effectively improve Minsheng Bank default distance.