The Determinants of Bank Loan Default-The Case of Taiwan Commercial Bank

• Main Authors: I-HsienCheng, 鄭義憲
• Other Authors: Shao-Chi Chang
• Format: Others
• Language: en_US
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/45345476357144028288

碩士 === 國立成功大學 === 國際管理碩士在職專班 === 98 === This study examines the determinants factors of loan default in the case commercial bank in Taiwan. The result after using Logit analysis to define determinants of credit default for overall samples shows that operating cash flow ratio of the Solvency factor、 financial fee ratio of financial structure factor、organizational management、 affects by the affiliated company、 transaction credit status with bank of the management administration factor are main factors that influence credit risk. The result shows that the above factors are all critical for the bank loan will default or not. As we know the essences of the Commercial Banks are gaining the profits from risk taking and financial services providing. A good risk control will decide the success of the banking business running and performance. Especially in the Taiwan financial market, the banking industry is owing to the highly competitive environments and dozens of banks providing the same quality financial products. The study result shows some important factors which are all significant for the bank loan default. There are the operation cash flow ratio of solvency、financial fee ratio of financial structure、Organizational management、affects by the affiliated company and transaction credit status with bank of management administration factor. I hope these results can provide as a reference for the bank administration level when granting the loan.