Case Study On Risk Management Of Beijing Commercial Bank’s Investment And Loan Linkage Business

The innovation of investment and financing mode is an important measure for the banking industry to support the national innovation-driven development strategy.In April 2016,Three ministries issued the "guidance on supporting Banking Financial institutions to strengthen Innovation and pilot loan linkage business".For the first time,it is proposed to support commercial banks to set up science and technology financial franchise institutions or set up investment subsidiaries to conduct loan linkage pilot commercial banks take investment and loan linkage as a bridge to solve the growth financing demand of sci-tech innovative start-ups,which is an effective measure to help the growth of science and technology enterprises and cultivate the new kinetic energy of economic growth.It is of great practical significance for commercial banks to cooperate with investment subsidiaries and equity investment institutions to realize investment and loan linkage,to optimize China’s financial structure,reduce enterprise leverage,and promote the transformation of bank integrated mixed operation.Since the start of the pilot,commercial banks,according to their own operating characteristies and advantages,eombined with the needs of enterprises on the investment and loan linkage to adopt a variety of operating models,but the principle of prudent operation of bank credit financing and the pursuit of high-yield equity investment risks are obviously differelt,and there are even contradictions.Therefore,the risk management ability of commercial banks has become the key to the orderly development of investment and loan linkage.Based on the economic and financial environment of our country,this article expounds the present situation of investment and loan linkage domestic pilot,and the necessity of the investment and loan linkage.Then,taking Beijing bank as an example,this paper analyzes the actual situation of China’s commercial banks to explore the loan linkage business,first combs the pilot course and bus:iness status of Beijing Bank’s investment and loan linkage business,and then aims at the risk management process of Beijing Bank’s investment and loan linkage business,in turn from customer screening,risk assessment,business model selection,risk control.In the perspective of the withdrawal of the right of exercise,the whole stage of trading activities is introduced in depth.On this basis,then it analyzes the unique advantages and problems of Beijing bank’s lending linkage model,and analyzes the problems of the risk management model of Beijing Bank’s investment and loan linkage.Then,a comparative analysis method is adopted to compare Beijing bank with Silicon Valley Bank witih mature investment and loan linkage business experience,and summarize the Enlightenment of Silicon Valley Bank in the operation mode and risk management of investment and loan linkage business.Finally,on the basis of drawing lessons from the experience of risk control of Silicon Valley banks in the United States,this article gives series of suggestions for improving the risk management mechanism of Beijing Bank’s loan linkage,and also provides ideas and enlightenment for the pilot loan linkage of other commercial banks in China.At the level of risk management,commercial banks should clarify and focus on market positioning,establish a professional risk assessment system,build an internal "firewall" isolation system,improve the investment and loan linkage risk compensation and slow release mechanisru,and build a loan linkage sharing platform.At the same time,at the government level,we should continue to promote the construction of multi-level capital market and intellectual property transaction system,and provide channels and legal guarantee for the withdrawal of equity and loan linkage,so as to promote the healthy and orderly development of China’s investment and loan linkage business.