| Summary: | 碩士 === 靜宜大學 === 企業管理學系 === 89 === This study performs an empirical analysis of 271 business lending cases at six central Taiwan branches of a certain domestic national commercial bank. The study examines two major items the bank uses to assess loans and investigates the loan closing reports and the credit rating table of loan-receiving businesses in an effort to determine significant variables affecting loan quality.
Major research findings include: (1) The term of the loan has a negative effect on the loan quality, indicating that the longer the term of the loan, the more likely the bank is to encounter overdue payments. (2) The higher the loan rate, the more likely default will occur, which indicates that the bank’s appraisal of the creditor’s risk is a strong factor affecting loan quality. (3) Industry characteristics are negatively correlated with loan quality, and the higher the score, the less likelihood the creditor would fail to make on-time payments. (4) There is a significant correlation between bank branch and loan quality, indicating that certain branches are more prone to loan default. (5) There is a greater likelihood of loan default.when the purpose of the loan entails payment of capital in installments. (6) There is a negative correlation between the amount of loan amount and the loan quality, which is to say that the greater the amount of the loan, the greater the likelihood of overdue payments. (7) Unit executives are responsible for approving loans; the overdue payment rate was significantly higher when loans are approved by personnel above the level of unit executive.
Furthermore, the empirical findings of this study also indicate that many of the items the bank uses to assess loans have no significant correlation with the loan default rate. These items include corporate capital, guarantors, length of association with bank, collateral, financial health, and type of business. In this time of a persistently high bad loan rate, these findings may serve as an important reference for bank credit policies.
|
|---|
