The Application Of Non-financial Factor Analysis In Creditrisk Management Of Small And Medium Commercial Banks

Risks faced by commercial banks in the credit business is called credit risk, credit risk has always been a major financial risk in the form of banking sector as a whole, is the main target and core financial institutions and regulatory authorities to prevent and control. Risks faced by commercial banks in the credit business can be divided into credit risk, market risk and operational risk, credit risk mainly in reality. Credit risk and control of commercial banks has been the most intractable problems of attention and feel. The main factors affecting the commercial bank’s credit risk can be divided into two kinds of financial factors and non-financial factors. Financial factors are based mainly on the financial statements provided by the borrower, to reveal its financial position, cash flow characteristics of the financial solvency and future trends to provide a basis for making the right credit decisions, focusing on quantitative analysis. Due to the financial factors affecting the external environment as well as its own limitations by relying solely on financial factors analysis has some drawbacks. Non-financial factors into borrowing mainly on aspects of business risk, industry risk, management risk and macroeconomic factors were analyzed. Because of the complexity of the market economy, increasing uncertainty in the business, so that commercial banks in the process of enterprise risk analysis, the non-financial factors is very important.With the continuous development of China’s financial market, China’s total commercial bank loans continue to rise, followed by a rising proportion of non-performing loan ratio of commercial bank’s credit risk exposure is not sufficient, and there is increased risk faced trend. Existing commercial banks in the process of enterprise risk analysis, and still focus only on financial factors, lack of analysis of the non-financial factors, leading to financial indicators can not understand the background and future trends, making it impossible to establish a comprehensive risk management concepts, not timely detection of potential risks. Financial and non-financial factors of factor analysis confirms the mutual complement each other to provide the necessary and sufficient basis for decision making managers.Credit risk of non-financial factors in our analysis is only recently emerging, non-financial factors present study focused on the qualitative analysis of the relevant. In this paper, this paper, the credit risk management of financial factors in Africa for the study, analysis of the role of non-financial factors in credit risk management and specific use. This paper reviews the concept and evolution of commercial bank credit risk management. Secondly, the introduction of domestic and foreign commercial banks advanced credit risk management methods, and the status quote of China’s commercial bank credit risk management and problems, points out the financial factor analysis of domestic banks only focus on credit risk management in the presence of defects. Third, the paper proposes the introduction of non-financial factors of credit risk management model, introduced the main contents of the non-financial factors, including the bank industry risk factor analysis of the borrower, the management of risk analysis, business analysis, risk factors for these factors apply the lessons of the principles and methods were analyzed individually, demonstration, evaluation of non-financial factors raise the risk of the method. Finally, the bank credit in the business process analysis of how non-financial factors to control credit risk, and through specific examples to illustrate the analysis in credit risk management in the use of non-financial factors.This paper argues that: With regulate the market economy, the financial system, the market for large data transparency, non-financial factors will have an increasingly important role in the commercial bank credit risk management, the non-financial factors and financial factors analysis help improve the commercial bank credit risk management staff to see through the essence of the phenomenon in numerous economic phenomena, to prevent the occurrence of bad loans.