| Summary: | 碩士 === 國立東華大學 === 國際企業學系 === 96 === In recent years, with financial liberalization, various derivative financial products emerged in the global markets. This trend of financial innovation not only facilitates the movements of international capital flows but also makes transactions more complicated. As the results, the overall risks of a bank's business have been greatly increased.
The credit risks occur due to the default of bank loans. In order to reduce or to avoid default risks, the credit evaluations are very important before primary financial institutions issuing the mortgages.
In this research，the credit risks of a primary financial institution in eastern Taiwan are analyzed according to the New Basel Capital Accord. The basic terms of a mortgage include the follows: (1) period of business relationship between the borrower and the primary financial institution, (2) level of the borrower’s deposits, (3) duration of the loan, and loan to value ratio of the mortgage. This study examines the connections between the basic terms of mortgages and the credit risk factors of primary financial institution. Logistic Regression Model is employed. The samples come from ten different branches of the primary financial institution. There are a total of 133 samples, 100 normal cases and 33 default cases. The results show level of the borrower’s deposits and the ratio of loan to value are highly related to the default risks.
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