A study on the credit rating and risk management of commerical banks

• Main Author: 歐秀容
• Other Authors: 張聖麟
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/53893839633688140916

碩士 === 國立臺灣科技大學 === 管理研究所 === 92 === Since the liberalization of financial markets in Taiwan, the number of domestic banks increased rapidly in a short period. It forces the fierce competition among local banks to increase their financial market share. The administrators often choose to neglect or lower the credit quality under business pressure. However, the more neglect ion, the worse credit quality. To avoid out of business, today, most domestic bankers have to reconstruct their credit control policy to improve the credit quality as soon as possible. Thus, it is an important research topic to construct a thorough internal credit rating policy reflecting the current financial position, management style and future development of a business loaner. The current credit rating method adopted by most local financial institutions are derived from the above three factors depending upon the size of the business. Based on data from 31 sampled financial reports of loaners between 2000 and 2002, an empirical analysis is done to analyze the appropriateness of the importance of each factor. The purposes of this study are to provide a review of the related literatures and to analyze the relation between financial rations and the credit rating. Today, the financial industry is fully aware the importance of monitoring credit risk. And it is included in the Basel Committee to establish capital charges for credit risk. The result of this study may help the financial institutions to improve their credit quality more effectively.