A Case Study On The Loan Evaluation Of HY Company By X Bank

In August 2018,HY Company applied for loan from X Bank,which is an industry that HY Company belongs to the access of credit policy within the bank,and X Bank immediately evaluated its loan.After a series of loan evaluation,X Bank believed that the asset scale and profit scale of HY Company keep increasing year by year,with good profitability and risk resistance ability.In October 2018,X Bank issued a loan of RMB 500 million to HY Company.Since the beginning of 2019,HY Company had constantly burst out credit risk signals,and the truth and rationality of financial data in 2018 were questioned by regulators.Why did the credit risk occur less than two months after X Bank issues the loan? Obviously,there were problems in X Bank's loan evaluation,which caused X Bank to fail to detect risk signals in time.This paper analyzes the case and explores the causes of the problems in the loan evaluation process,so as to provide reference for improving the loan evaluation quality of X Bank and other commercial banks.This paper first introduces the case of X bank's loan to HY Company,and elaborates the original loan evaluation process and the loan evaluation results of X bank.Based on the business and financial problems of HY Company after the loan was issued,this paper puts forward reasonable doubts on the original loan evaluation process of X bank.Then,it analyzes the case of the loan evaluation of HY Company by X bank,and draws a conclusion that is different from or even opposite to the original loan evaluation by using the correct analysis method.Through the comparative analysis of the two kinds of loan evaluation results,it is concluded that the original loan evaluation will lead to the deviation of the evaluation result due to the improper use of evaluation methods and the lack of some evaluation links in the original loan evaluation,which affects the correct judgment of X bank.Through the research of this paper,it is found that due to the problems of enterprise scale dependence,rigid use of financial indicators,risk control in form and so on in X Bank,the wrong use and analysis of evaluation indicators appeared in the process of loan evaluation.Due to the low refinement of X Bank's loan evaluation,the single information channel,the imperfect credit approval system and the over result oriented credit system rating,the loan evaluation results failed to reflect the main risk points of HY Company truthfully and comprehensively,and the risk control conditions proposed in the loan evaluation conclusion also had shortcomings.Through the case analysis of this paper,it is concluded that commercial banks should not be limited to the raw financial data and use the financial indicators mechanically when evaluating loans,and should amend the financial indicators in combination with the actual situation of enterprises,which is conducive to the comprehensive analysis of enterprises.Commercial banks attach great importance to the mining of the real risk points of the financiers in the loan evaluation process,which is helpful to put forward effective credit enhancement measures in the loan evaluation conclusion to prevent the credit risk of the public loan business and improve the loan evaluation and credit risk management level of commercial banks.