On Problems And Countermeasures Of Credit Granting By Commercial Banks

The thesis is divided into seven parts. By introducing the external economic environment, and market competition status and existent problems of CCB Guangdong Branch, the thesis points out that new way and thought should be adopted in dealing with trade finance business.The thesis begins with the current situation of foreign trade of Guangdong Province and the development status of foreign exchange business of CCB Guangdong Branch. Then the author reviews theoretical accomplishments of credit financing over the past 30 years, mainly involving credit transaction cost security theory, adverse selection and moral risk security theory, and relationship lending security theory. So CCB should open-mindedly reassess the scope and controllability of mortgage security and increase the importance of cash flow to repayment. By citing statistic data of CCB Guangdong Branch, the thesis reveals the status and influence of credit granting for trade finance in three aspects. After stressing the necessity and imminence of vigorously developing trade finance business, the thesis analyses the reasons why CCB Guangdong Branch has few customers of trade. the thesis discusses countermeasures to credit granting problems in trade finance of CCB Guangdong Branch as follows: improving the calculating method of credit granting and deducting credits based on different risk discount factors, differentiating access thresholds for credit granting, expanding the scope of mortgages, exploring new channels for supply chain financing, improving employee quality, awareness and ability and comprehending security issues open-mindedly, and based on full understanding of customers, changing from control over individual enterprise operation to management of overall supply chain. The author makes the following conclusions in the seventh part, With continuous improvement of credit system and smooth information flow, it becomes increasingly convenient for banks to conduct credit business. So, in developing their business, it's very important for banks to view enterprises from a brand-new perspective.