The Analysis Of The “Credit Factory” Model Of Z Bank Sichuan Branch

China has witnessed a slowdown in its economy in recent years.Risks brought by expanded financial assets previously have been emerging with increasing pressure on banking industry.Under the circumstance of interest rate spread contraction and industry fluctuation,banking profit has taken a toll.Financial institutions are beset by soaring strains on capital and non-performing loan caused by difficulty in savings absorption.Thus,financial institutions are confronted with the challenge on how to transform their business model.The primary lines of this thesis are why Bank of Z adopts model of‘credit factory'and the change over scale of loans and assets quality after Bank of Z Sichuan Branch adopts the model mentioned above.This thesis differentiates traditional personal loan process,credit rating method,model of‘credit factory',and elaborates the change over scale of loans and assets quality after Bank of Z Sichuan Branch adopts the model of‘credit factory',points out some problems in the model and offers optimized advices as well.This thesis consists of six chapters.The Introduction illuminates the background and significance of the topic,describes how traditional banks transform while coping with external shock such as competition with financial institutions and emergence of internet finance,and inefficiency in internal performance caused by traditional loan model as well as development of the Bank of Z being held back by poor risk control.This thesis adopts‘credit factory'model to upgrade process of bank services,improve work efficiency and risk control based on research results of credit risk,loan quality and credit factory from available documents.The four chapters from 2^nd to 5^th one demonstrates the reason why‘credit factory'is adopted according to the competition between Bank of Z Sichuan Branch,financial institutions within Sichuan and internet finance,the analysis of change over scale of loans and assets quality of Bank of Z Sichuan Branch from 2012 to 2016,as well as problems in and risk analysis of traditional personal loan service of Bank of Z.This thesis also gives establishment background of‘credit factory'in Bank of Z and shows its strength compared with traditional model.It as well includes operation results of‘credit factory'of Sichuan Branch,scale of loan,assets quality and analysis of specific cases.Chapter Six points out some problems in the model and offers optimized advices as well.The conclusion of the research is that work efficiency in the model of‘credit factory'is improved through process upgrade.And,as for access qualification for the client,initial risk can be at some point predicted by means of rating system.Assets quality is well managed through the model of‘credit factory'.However,to achieve the transformation for the bank,prevent assets quality from worsening and remain competitiveness of the bank in the future of financial industry,one must move faster to build credit system,enhance personnel's profession,strengthen the capacity for identifying credit risk and adhere to the model of‘credit factory'as well as reshape credit culture.