The Application Research on Financial Statements Analysis in the Credit Risk Management in H Bank
|Keywords||Risk asset Risk management Financial reporting analysis|
H Bank is located in long-developed northwestern region of Jiangxi. Business credit assets is its traditional and most important of a business, like all state-owned commercial banks, It is one of the most important source of income which accounts for a high proportion of total assets. But in the meantime, inevitably face the risk of credit assets, once the losses, ranging from reduced bank profits, while in a threat to the stability of the local economy. It is necessary to use appropriate methods to manage the credit risk of assets.Firstly, this paper introduces the general theory of the bank credit risk management and financial statement analysis. Then it analyses credit risk management of the H Bank. Based on the current credit bank risk management framework, we found there are some problems in the current credit risk management framework of the H Bank through deeply analysis. The main reason lies in the lack of a reasonable credit risk assessment system in the H Bank, such as the effective evaluation of the borrower, the lack of specific quantity index. But financial statement analysis method, through the financial data of loan companies, discards the dross and selects the essential, eliminates the false and keeps the true can compensate for bank credit risk management of the H Bank, existing defects can be applied to the H bank credit risk management.Secondly, the paper constructs the basic business process of the H banking applications financial statement analysis credit risk management. The basic process can outline of borrowing enterprises for: financial statements according to the results of examination and review -> the financial statements, adjust index (index selection and empowerment) -> combined with other financial evaluation analysis results, credit.Finally, this paper selects a chemical industry customer as a case to analyze. According to the front of the financial statement analysis framework establishment of borrowing enterprise financial statements and financial index analysis, examination of financial borrowing enterprises get comprehensive evaluation results. Based on the analysis of the financial results of comprehensive evaluation for the credit company, the H bank gives the enterprise credit decisions.