A Study On Improvement Of Financial Analysis In Credit Investigation In H Subbranch Of ICBC

Most of the profits of commerc ia l banks in China are from spread of theloan-to-deposit interest rate, the credit risk is the most important risk of co mmercia lbanks. The bank’s2012annua l report shows that the bala nce of no n-performing loansbegan to rise. At this stage, controlling cred it risk has become a prerequis ite for thehealthy operation of banks in China. The premise of the stable operation o fcommerc ia l banks is not o nly to reso lve the risk whic h has occurred but a lso toidentify the potentia l risks before mak ing credit dec is ions. Corporate financ ia lanalys is is the first barrier to contro l the cred it risk in the investigation process, andit provides a favorable basis for the credit exa mination and approva l departme nt tomake the credit decis io n. And a lso it can show the important s igna ls which canprevent a nd contro l the credit risk. Therefore makes it beco me my research topic. Thefinanc ia l ana lys is of the borrower is the core of credit investigation. Thro ugh theeffort of the financ ia l ana lys is not only can make us understand the fina nc ial s ituationof borrower, but a lso can predict the future developme nt by us ing so me financ ia lindicators. A comprehens ive system o f fina nc ia l ana lys is syste m can help the bankidentify the credit risks of the borrower and provide an important basis for creditdecis ion.Industria l and Commercia l Ba nk of China is the biggest state-owned commerc ialbank in China, therefore how to control the credit risk effective ly is the mostimportant work. Firstly, this thes is summarizes some achieve me nts about financ ia lanalys is and credit risk ma nage ment theory, and then stands the positio n of customermana ger of H s ubbranch of ICBC, this thes is introduces the curre nt s ituation o f duediligence fina ncia l a na lys is work. And then a nalyzes the proble ms and reasons whic hexisting in the due dilige nce financ ia l ana lys is work. Aimed at the so lving proble mswhich inc lud ing trad itiona l financ ia l ana lys is fra mework is scattered, the design offinanc ia l index is unreasonable, lack financ ia l qua lity ana lys is of the borrowers, toooptimis tic at cash flow forecast. In order to solve these proble ms, firstly we suggest toput forward the Harvard ana lys is fra mework to establis h a four dimension frameworkof credit financia l analysis system, which contain four different but closely related parts:strategic navigation, accounting analys is and adjustment, financia l analys is, prospectforecast. In the same time, we advise to improve quality analysis of financial position and add some cash flow and industry index to help redesign the financia l index system,and in the process of assessing prospect forecast, using the scenario analysis method canevaluate the range of possibility of borrower operating performance and cash flow andmake us understand the borrower’s repayment ability and recognize potential risks in abetter way. All the measures help the customer managers improve the credit financialanalys is work.