Research On Evaluation Of Credit Granting Clients And Improvement Of Profit Contribution In Bank Of China A Sub-branch

Since 2013,China has been affected by the continuous downturn of the macro economy and the adjustment of industrial structure.Especially after 2015,various economic indicators have been sluggish for many months,showing “declining economic growth,falling prices of industrial products,and falling profits of entities”.The “four-up and one-up situation” of the decline in fiscal revenue growth and the rise in economic risks have already entered the growth rate shift period.The growth rate of GDP that has remained above 7% for many years has ceased to exist.As one of the four municipalities directly under the Central Government of China,T city has faced severe challenges in the past two years.A Sub-branch,Bank of China(hereinafter referred to as “A Bank”)is one of the four major state-owned banks in key areas of T city.In recent years,although the total amount of credit business of the company has increased,the company's credit contribution to customers has been comprehensively unsatisfactory,the industry structure is still dominated by traditional manufacturing or commodity trading enterprises.Various indicators such as PA profit,EVA,and RAROC have appeared early warnings,and risk events such as non-performing loans or hidden non-performing loans are frequent.These problems in A Bank may be caused by many external reasons such as macroeconomic downturn and industrial structure transformation,but the internal reasons,such as the low overall profit contribution of credit customers,inappropriate selection of customers,can not be ignored.After studying the research achievements of domestic and foreign scholars,such as Customer Relationship Management Theory and Customer Value Evaluation Model,the author of this thesis,through years of work experience in A Bank,analyzes the impacts of the profit contribution of credit customers on profits and risks of A Bank by applying the data of that bank.The author also finds out the features of high-quality customers by constructing the model related to RAROC,in order to improve the risk quality of the company's credit customers and the overall profit contribution of the business and products to commercial banks by enhancing value of credit business customers and selecting high-quality customers,which is helpful to the development and transformation of A Bank.