Commercial Bank Credit Analysis Processing Improvement Study

Credit risk management is one of the core elements of commercial banks for itsstable continuous operation in corporate financing business. At present, financial analysisis still widely used in commercial banks for credit decision making as major credittechnology. However, there are still many problems in practice of current commercialbank financial analysis system. With the development commercial banks in China,although the result of financial analysis is not the sole criterion for credit decision-making,banks still focus more on the quantitative analysis, which is considered as more scientificmanner and more objective.This paper enumerates two banks (one of which is Bank of N, a domestic joint-stockcommercial bank, and the other one is Bank of U, a P.R.C incorporated foreign investedbank) for examples to present ubiquitous problems in the process of financial analysis incurrent commercial banks. Currently, the banks used to look at single account inrespective statements and focus on static index for their financial analysis, which makesthe work become a mere formality. Besides, the listed examples also clearly exposed thatcommercial banks are over-dependent on external audit and internal management of theclients, and the lack of procedure of authenticity and accuracy inspection of financial datacollected for analysis. Articulation checking and account relevance analysis is proposedin this paper to introduction into the practice process of financial analysis in commercialbanks for credit decision to improve the authenticity and accuracy of the financial datathrough a number of cases study. Meanwhile, practical work in the operation is alsodiscussed. As mentioned above, the problem of lack of procedure in financial authenticityand accuracy can be largely improved if articulation checking is introduced.