Research On Optimization Of Financial Analysis Framework Of J Bank Credit Risk

After subprime crisis in 2008,Chinese commercial banks have been finding opportunities to expand credit service.In recent years,the credit business is booming,and bank asset expand rapidly.With economic downturn and the trend of market interest rate,non-performing rate is rising.The bank's credit risk management meet great challenge.Credit business is one of the main ways of commercial banks to obtain profits,which is also one of the riskiest businesses.The main risk of credit business are company's credit risks,the bank prevents from company's credit risks by credit investigating,credit risk rating and credit risk assessing etc.Financial analysis is the fundament of preventing credit risk and making credit decision,which plays a key role.Therefore,financial analysis is the most priority in any bank,in which the bank pays more cost in manpower,material and money.However,there still are many problems,such as management style falls behind,financial analysis level is lower and more unsound.J bank is a foreign bank headquartered in Hong Kong.It is very urgent to optimize credit risk.In order to improve credit assets quality,guarantee credit assets safety,this paper raise following ideas,build a set of advanced methodology on the basis of real finance data.This paper starts from quoting general theory of credit risk management and financial analysis,introduces credit risk analysis framework in J bank,then,paper analyzes the existing problems and the root cause in the frame from the financial statements monitoring,credit risk index designing and operating.Next,paper,referring to the Harvard analysis framework and combining J bank's credit structure and customer type and credit type,proposed optimized proposal,at last,build a competitive credit analysis frame for J bank.In the end,through the analysis of YY company's credit case,paper compare newer and older operation proposal's result,the result reflects the crucial meaning of paper's study.