Study On Risk Management Of Cross-border M&A Loan In Commercial Banks

China Banking Regulatory Commission?CBRC?released"Guidelines of Merger&Acquisition Loan Risk Management in Commercial Banks"in 2008,allowing qualified commercial banks to develop M&A loans.The Guidelines created the conditions for the development of LBOs in China.On September 30^th,2013,China Free Trade Zone?Shanghai?was established,combined with introduction of a series of supporting policies.It encouraged enterprises to open up overseas markets through M&A.On February 2015,CBRC revised"Guidelines of Merger&Acquisition Loan Risk Management in Commercial Banks"with the original one abandoned.With promotion of"going out"strategy,cross-border M&A has become an important way for Chinese enterprises to invest overseas.In many sources of funding,to get M&A loans from commercial banks has become an ideal way of financing.Therefore,commercial banks are facing unprecedented opportunities and challenges in the field of cross-border M&A loan.Risk management,as one of the problems of cross-border M&A loan,is in the exploration and practice of process.The study explores the motivation,analyzes the current situation and main problems of cross-border M&A through the introduction of the case of Shanghai NS Group acquiring Finland OK Group.The study summarizes the whole process of risk management of cross-border M&A loan,including risk identification and management,on the basis of domestic M&A loan.In this paper,the research is mainly based on practice,so that it has a certain reference value in practical use for commercial banks.