Research On The Optimization Of M&A Loan Risk Management Of Shandong Branch Of N Bank

In recent years,financial market volatility has intensified,bond market defaults are frequent,asset quality of banks’ credit business is under pressure,and the pressure on commercial banks’ risk prevention and control has increased abruptly.With the major strategic opportunities such as the conversion of new and old energy sources and the mixed reform of state-owned enterprises in Shandong,the scale of mergers and acquisitions(M&A)has been expanding,and M&A loans have become an important financial channel for enterprises to achieve industrial restructuring,capacity optimization and mixed ownership reform.Due to the long maturity and complex transaction structure,it is more difficult to formulate credit schemes and control risks,which poses a greater challenge for commercial banks’ risk management.This paper selects Shandong branch of Bank N as the research object,and introduces the development of the bank’s M&A loan business,business processes,the history of management methods and the current risk identification and management mechanism,and analyzes the current management status of M&A loans in Shandong branch of Bank N.The analysis through questionnaires summarizes its risks such as imperfect credit programs,uneven quality of credit staff,and organizational structure and processes that are not in line with the actual business.According to the investigation and evaluation of the case of M&A loan of 265 million yuan for G Company’s acquisition of 18.72%equity interest in F Company,the investigation and evaluation of the sources of funds available for debt servicing during the business existence period totaled 1,850,605,000 yuan,with a debt servicing guarantee ratio of 1.47,and the debt servicing capacity was reasonable,but as of the date of the dissertation,G Company’s promissory notes issued by various commercial banks were overdue by a total of 460 million yuan,and there was a debt crisis However,as of the date of the dissertation,G’s promissory notes with various commercial banks were overdue by RMB 460 million,and the debt crisis existed.By summarizing and analyzing the case,the business process and organizational structure risks,operational risks of the M&A party and the M&A target,integration and strategy risks of the M&A transaction,valuation risks of the M&A transaction,and legal and compliance risks in the process of pre-lending investigation,pre-lending review and duration management are derived.Through case study method,questionnaire method and literature review method,this paper points out the problems of M&A loan risk identification and management in Shandong Branch of Bank N,such as the supporting management system needs to be improved,the lack of M&A professionals and the M&A loan process needs to be improved and optimized,and proposes the following five optimization solutions:to set up a flexible team to carry out M&A loan business consultation mechanism,to establish an M&A loan approval and fast-tracking mechanism,to clarify the working steps of each process and to improve the risk management.The following five points are proposed for optimization:forming a flexible team to carry out M&A loan business consultation mechanism,establishing a fast-track M&A loan approval mechanism,clarifying the work steps and responsibilities of each process,optimizing the guarantee scheme,dynamically adjusting the repayment plan,strictly controlling the quality of customers,preparing syndicated loans and other credit scheme optimization,establishing quantitative indicators,refining the classification management,cultivating professional talents and strengthening team building.This paper takes the M&A loan business of Shandong Branch of Bank N as the main subject of study,analyzes in depth the current situation and problems of risks in its development process,discusses its optimization measures and suggestions,and explores new ideas for the high-quality development of commercial banks’ M&A loans.