Case Analysis On Z Bank's Loan Management To A Group

As the most important part of the asset business of commercial Banks,credit business is the main means for commercial Banks to make profits.In recent years,under the pressure of performance evaluation and industry competition,the services of credit business are mainly targeted at group customers.Commercial Banks generally believe that such customers are large in scale,strong in capital strength and relatively lower in risk,which may bring higher profit growth than expected,and thus generate a kind of "speculative psychology".Relevant data show that the total amount of commercial Banks' credit granting to group customers has accounted for more than half of all credit granting,and even reached 60%.Large commercial Banks offer excessive credit to group clients,and small and medium-sized Banks blindly follow it."herding effect" is apparent,since they think this kind of group clients can get the favour of big Banks,big money has been invested,Though one invests a small number of money,he can possibly share "a share" from the profit.However,as the economic development entered the adjustment period,some group customers were affected by industry factors,the business performance declined,and credit risks occurred frequently.At the same time,the vast majority of commercial Banks still follow the old thinking of "putting more emphasis on supervision" in the actual loan management,blindly expanding loans and ignoring the importance of post-loan management,resulting in the high non-performing loan ratio,which has become an imminent pain point to restrict the development of commercial Banks.In addition,group customers,as a special credit granting group,have the characteristics of sudden,joint and and diffusion risks caused by default,which affect not only the asset quality of the credit granting bank,but also other financial institutions,causing systemic risks in the financial industry.Therefore,how to carry out effective loan management is still the key for commercial Banks to ensure the safety of assets and win in the new round of competition.Through the analysis of specific cases,this paper shows the deficiencies and merits of Z bank in the loan management of A group from the aspects of pre-loan investigation and approval,post-loan tracking and monitoring,and non-performing loan collection.In the case group companies A established long-term credit relationship with bank Z and the frequency of borrowing is high,the amount is large,but due to various reasons,bank Z in to A group of post-loan management work process,by moving under the normal for the bad loan classification,then Z bank of non-performing assets of the integrated use of A variety of means to achieve the collection,to avoid assets loss.This article analyzes the Z bank both in the practical problems and the reasons of credit management work,also for Z collect bad assets of bank has carried on the induction summary innovation and success,at the end of the article the author made further sublimation according to the case involving the whole loan management experience and lesson to sublimate,and it put forward their unique way of thinking of rationalization in order to work for commercial Banks in the future to optimize the credit process,provide guidance and practical significance to improve the quality of credit business of big clients.