A Case Study of Bank’s Management on Default Risk for Enterprises Loan

• Main Authors: Pei-hsuan Chen, 陳沛瑄
• Other Authors: Day-Yang Liu
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/63777425795436240900

碩士 === 國立臺灣科技大學 === 財務金融研究所 === 101 === Banks are profit-seeking enterprises and lending is important source of revenue for banks especially in the corporate lending. With the financial system becoming more and more international and the increase of the number of banks, fierce competition between banks increases. Banks tend to ignore the credit quality of loans and corporate default risk in order to seize market share, so the non-performing loans ratio rises and the profit situation is challenged. In addition, the Small and Medium-Sized Enterprises (SMEs) are the main body of Taiwan's economic. SMEs lack transparency of information with respect to large enterprise and there was little external credit rating for SMEs, thus banks are difficult to credit for SMEs. Banks’ asymmetric information problem increases and the corporate defaults risk rises. For the above, this study wants to explore corporate default risk factors and understand the problem of asymmetric information between banks and corporate. Most of the literature is quantitative and they use logistic regression model to find the factors of corporate default risk, thus this study directly through qualitative interviews to understand the actual situation of the corporate default risk factors. By this study, we can know corporate default risk factors, understand the bank how to control default risk of corporate lending and reduce the problem of asymmetric information. And we can analysis the control effectiveness and future planning of risk management direction. This case study can be used as a reference for the bank lending credit and SMEs which apply for loans. And this study can help to enhance the credit quality of bank lending and reduce the credit risk of bank loans.