Research On The Risk Management Of Transnational Merger And Acquisition Loans Of Commercial Banks

In recent years,under the strategic layout of national "Belt and Road",more and more Chinese enterprises participate in cross-border M&A transactions,which is one of the achievements of China undefined economic structure adjustment and industrial upgrading.In the report of the 18th National Congress of the Communist Party of China(CPC),it is pointed out that the key to further enhance the comprehensive competitive ability of Chinese enterprises is to allow foreign investment strategy to be carried out by means of M&A investment and so on.Under the background of the new normal of China undefined economy,the M&A market has flourished and developed,and the enthusiasm of Chinese commercial banks to intervene in the M&A market has become more and more high.In the whole of 2017,Chinese enterprises completed 341 M&A projects,with the total actual transaction amount as high as 96.2 billion US dollars.Domestic commercial banks provide nearly 120 billion yuan in M&A financing loans.Commercial banks M&A loans effectively support domestic enterprises to carry out overseas mergers and acquisitions,while rationally allocating high-quality resources at home and abroad,carrying out industrial globalization,building international brands,and striving to become a world-class multinational enterprise as soon as possible.M&A loan is an innovative financing business.Compared with the traditional bank loan business,its risk causes are complex,its business coverage is extensive,and it is easy to produce non-performing assets and business risks,which brings a higher level of challenge to commercial banks.In addition,the integration benefit of the enterprises after M&A directly affects the later benefit and the loan quality of the commercial banks that participate in the M&A loan,and brings great risk to the bank loan recovery and operation benefit.Therefore,this paper focuses on risk management in cross-border M&A loans of commercial banks.Starting from the connotation of M&A loan,this paper makes a normative study on the related concepts of M&A loan,analyzes various types of risk in M&A loan,and briefly describes the evaluation method of credit risk,in order to emphasize the importance of risk identification before bank loan.Taking the overseas M&A loan of N Bank X Branch as an example,this paper analyzes the due diligence link of the case,and studies the risks faced by the M&A loans of commercial banks at present and the risk control measures that can be adopted.In addition,in-depth analysis of the risk assessment and management of M&A loans in China undefined commercial banks standardized operation mode,focusing on the financial management of enterprises to measure the repayment and guarantee capacity,and summarize the risk investigation conclusions.In the empiric,al analysis,the author uses the Z-Score model combined with the case to analyze the credit default risk,which proves the control ability of the loan risk.Finally,the paper puts forward the countermeasures and suggestions on the risk management of M&A loans in China through the empir:ical analysis of the overseas M&A loans of N banks and the practical experience of commercial banks in the United States and Japan in participating in enterprise financing.It has strong practical value and practical significance.In particular,there are more and more cross-border M&A transactions in China in the future.By analyzing the cross-border transaction risks of M&A loans,we can improve the risk management level of domestic banks engaged in overseas transactions.At the same time,it also provides certain reference value for Chinese enterprises in M&A financing.