Research On Risk Control Of M&A Loans In Commercial Banks

With the continuous development of the modern enterprise business model and the gradual maturity of the modern financial industry,the two permeate and influence each other,and gradually become an organic whole.All kinds of enterprises inevitably participate in financial activities in various forms in the wave of development.Under the general trend of enterprise financialization,whether a company can survive and develop in the increasingly fierce competition depends largely on the level of financial financialization of the company and its ability to plan and operate capital.In all kinds of corporate financial activities,mergers and acquisitions between enterprises have become an indispensable and important form.For companies,mergers and acquisitions can help them rapidly expand the market scale,effectively solve the plight of low development quality and efficiency,and break through cross industry development barriers;For the whole industry,M&A and reorganization can effectively solve the problem of low industrial concentration,accelerate the transformation and upgrading of traditional industries and improve efficiency,and promote the transformation of new and old kinetic energy and industrial structure.This paper takes the risk identification and control measures in the M&A loan business of commercial banks as the research object.The article mainly includes five parts: The first part is the introduction,which is the first chapter of the article.It mainly introduces the practical background and research significance of this topic,the current situation of relevant domestic and foreign literature research and the research methods used in this paper;The second part is the theoretical analysis of M&A loan risk,which is the second chapter of the article.It mainly introduces the connotation,characteristics and development history of M&A loan,combs some common risk points in M&A loan business according to relevant theories and policies,and analyzes the causes of risk.The third part is the quantitative evaluation model of M&A loan risk.Taking the M&A loan of WB Company of A Bank as an example,this paper first introduces the basic information of the acquirer,the target company and the relevant content of the M&A project,then analyzes the risk management and control of A Bank in the M&A loan project,and summarizes the current M&A loan risk management system,process and risk management measures of A Bank.The fourth part is the case analysis of M&A loans,which mainly introduces the main evaluation methods and construction process of the risk quantitative evaluation model,and then verifies the risk quantitative evaluation model with the actual case of the merger loans of WB Company by A Bank.The fifth part is about the deficiencies and suggestions in the risk management and control of Bank A’s M&A loans,mainly by combining the analysis of the third part and the fourth part,summarizing the deficiencies in the current risk management process of commercial banks’ M&A loans,and trying to give some feasible suggestions for the deficiencies.The sixth part summarizes the research results of this paper and looks forward to the next research direction.Based on the above background,this paper has studied the connotation and development history of M&A loans.Based on a variety of credit business risk management theories and relevant policies such as full process risk control and internal control theory,it has sorted out the risk categories in bank M&A loan business and analyzed the causes of M&A loan risks.At the same time,it has established a quantitative evaluation model of M&A loan risks using analytic hierarchy process and fuzzy comprehensive evaluation method,Taking the M&A loan provided by A Bank to WB Company as an example,this paper studies the risk identification and control means of commercial banks in the M&A loan business,and verifies the scientificity and effectiveness of the risk quantitative assessment model.Finally,it analyzes the current common deficiencies in the risk control of domestic commercial banks’ M&A loans,mainly including: lack of risk quantitative assessment means,ina dequate organizational structure The management process is not standardized enough and the risk culture is missing.Then,the paper puts forward feasible suggestions for the above shortcomings,mainly including: building a good risk management culture,building and improving the risk management system,speeding up the bank information construction and strengthening the talent team construction.Through this study,we further sorted out the relevant risks of M&A loan business,established a risk quantitative evaluation model,and gave feasible suggestions for the current shortcomings of commercial banks,which enriched the academic theoretical system of M&A loan risk management.At the same time,it has practical significance for improving the bank’s M&A loan risk management system and improving the bank’s risk management and control capability,It provides some reference for banks to reduce capital loss while vigorously developing innovative financial services such as M&A loans.