A Study of Taiwanese Bank Credit Assestments on the Medium and Small Enterprises-A Case Study of C Bank

• Main Authors: Cheng-Chung Lin, 林整鍾
• Other Authors: Chih-Wen Huang
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/h9wz39

碩士 === 淡江大學 === 國際企業學系碩士在職專班 === 102 === Small and Medium Enterprises (SME) are the core of Taiwan’s economy system. The government has put in effort and committed to the SME development in all aspects. Throughout the development of SME in the past years, financial institutions have played an important role in smoothen money/payment flow. However, facing the challenges such as low interest rate and keen competition caused by overbanking, how to effectively control credit risk and further improve efficiency and quality of operations became a very important matter for all banks. The purpose of this study is to provide banks and its lending business related personals a credit risk evaluation reference by analyzing the credit assessment process of SME lending in Bank C. From Bank C’s developing enterprises banking center’s portfolio, five similar business scale corporations were chosen for case study. These credits were first examined by an risk rating evaluation model and a set of assessment standards setting up by Bank C’s existing related credit policy and regulations, and then these credits were examined by experienced credit risk specialists along with the 5P analysis. The conclusion of the two steps forms the approval/disapproval, and conditions and terms of credits. It is broadly known that Taiwanese SME generally reveals limited information both operationally and financially via financial statements, and thus, the banks are exposed to risks hidden beneath the surface. By properly combining standardized credit risk rating assessment with experienced personal judgment, the bank can effectively control credit risk, and at the same time, improve efficiency of the approval process. The result of this study shall provide the banks and its lending personals an alternative to their credit evaluation process. It is believed that by applying such method, the banks can lower the probability of default of credits and improve lending efficiency and quality to enhance the banks’ risk management quality.