An empirical research on evaluating banks’ credit assessment of corporate customers

BACKGROUND: Under the rapid change of the global financial environment, the risk control of the credit granting is viewed as the foremost task to each bank. With the impact one by one from financial crisis and European debt crisis, the steady bank business is also facing the severe challenge. Banks approve the credits for their customers and then make money from the interest. CASE PRESENTATION: Credit granting is not only the primary job but also the main source of income. The quality of credit granting concerns not just the reclaims of creditor’s rights; it also affects the successful running of banks. DISCUSSION AND EVALUATION: To enhance the reliability and usefulness of bank credit risk assessment, we first will delve in the facets and indexes in the bank credit risk assessment. Then, we will examine the different dimensions of cause–effect relationships and correlations in the assessment process. Finally, the study focuses on how to raise the functions and benefits of the bank credit risk assessment. CONCLUSIONS: In those five credit risk evaluation dimensions, A “optional capability” and D “competitiveness” are of high relation and high prominence among those dimensions, influencing other items obviously. By actively focusing on these two dimensions and improving their credit risk assessment ability will solve the foremost problems and also solve other facets of credit risk assessment problems at the same time.