A Study on Using the Financial Ratio Indicators to Assess the Credit Rating of Domestic Commercial Banks

• Main Authors: Cheng-Hui Shiue, 薛澄惠
• Other Authors: Jan-Chung Wang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/82232635101930885012

碩士 === 國立高雄第一科技大學 === 金融研究所 === 101 === A total of twenty domestic commercial banks are chosen as the sample. The study period covers a two-year period, from 2010 to 2011. Also, the financial five-force analysis model is used to evaluate the credit ratings of domestic commercial banks. First, sixteen financial ratios are categorized as five forces: operating capacity, profitability, growth capacity, liquidity, and stability. Next, the five-force weights of the model are adjusted based on the features of commercial banks. Empirical results show that the credit ratings of commercial banks based on the financial five-force analysis model are mostly consistent with those based on credit rating agencies. This implies that the financial five-force analysis model only based on financial ratio indicators is indeed good evaluation performance for the credit ratings of commercial banks.