Non-financial Factors In Commercial Bank Credit Risk Management Analysis

There are various risks that underlies in Commercial banks'credit business, which include credit risk, market risk and operation risk, especially credit risk .The reasons that influencing credit risk include financial affairs factors and non--financial affairs factors. The analysis of financial affairs factors lays emphasis on qualitative analysis. Banks must analyses debtors'assets, clearing off their debts and profits according to borrowers'financial affairs forms to make scientific credit decision. But there some defects in the analysis of financial affairs factors because of itself and environment in outside. The analysis of non---financial affairs factors analyses debtors'risks in management, trades and others. The analysis of non---financial affairs factors can explain the production, development and future of financial affairs quotas. And it helps banks'loan workers to understand the principles of credit risk management correctly, to improve our ability of credit analysis and decision. Its signal of credit risks may be quicker and will be more important in supervising loans in face of market economy and indefinite factors. Two kinds of analysis confirm and complement each other and provide important basis for credit decision. We analyses non--financial affairs factors lately.This thesis lays emphasis on the analysis of non--financial affairs factors and its influence in supervising loans. Firstly, this thesis start from the conception and history of credit risk management in Commercial banks. Secondly, it introduces the methods of credit risk management in foreign Commercial banks, and the current situation of credit risk management in China. In this way, this thesis indicates the defects lying in the analysis method of financial affairs factors in China. Thirdly, this thesis introduces the analysis method of non---financial affairs factors. It puts forward main content: analysis debtors'risks in management, trades, and others, and analyses reasons to every kinds of risks and put forward ways to these questions. At last ,it explains how to use analysis of non---financial affairs factors in credit decision by case analysis.The main argument is that the analysis of non--financial affairs factors is more and more important in credit decision with development of market economy and standard of financial systems. We can use two analysis methods of non---financial affairs factors and analysis of financial affairs factors , it can help us to distinguish the essence and appearance of matters and can avoid bad assets.