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The Study on Development of Individual Financing Business of China Commercial Bank

On 19/09/2013, in Finance, by rain

In the financial industry opening up in the context of commercial banks, to win marketopportunities, strengthen the competitive advantage, timely introduced a number of personal financialproducts. After2006, with the global stock market, commodity market” bull market” the market the furtherevolution, the banks have launched with the stock, index, commodity prices and other targets linked tofinancial products. Especially some foreign banks, based on its business integrated, interdisciplinary featureand rich experience in overseas investment and talent advantages, is more personal financial products as themain varieties of financial business. In2007, the domestic bank personal financial products from theproduct quantity, participating institutions, groups of investors and other aspects, there are more rapidgrowth. But on the whole, the personal financial product market development is still not out of infancy.First of all, our country still has not formed a complete personal financial product system, product serviceobject standard single. Secondly, domestic commercial banks in financial products marketing operationindeed exists the shortage of talent, propaganda way of simple and extensive customer classification statusmachine. Once again, the commercial bank internal institutions coordination is not smooth, low efficiency.Finally, the domestic investors’ lack of understanding of financial products. The combination ofCommercial Bank of developed country advanced experience, think our country commercial bankindividual financing business development should be: first, should improve their own product design andmanagement ability, achieve financial products and professional management. Second, increase financialproduct publicity, expanding its own brand awareness. Third, coordination of commercial bank’s internaldepartments, form cooperate each other and efficient personal financing service system. Fourth, improvethe regulatory system, promote the orderly and healthy development of personal financial business. In fifth,the ongoing personal financial business innovation, keeping its vitality in the development of. Sixth, helpthe investors to finance knowledge, establish a healthy investment philosophy.

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The Research on Performance of Commercial Banks Based on EVA

On 19/09/2013, in Finance, by rain

In recent years, with the development of financial innovation, the world economic integration and the financial globalization, the global banking are experiencing tremendous changes. The banks of various countries are facing increasingly fierce competition. At the same time, along with the reform of China’s financial system, the commercialize degree of Chinese economy rise ceaselessly. The internal and external environment of China’s banking business is undergoing tremendous changes. These derived from regulatory requirements, competition, financial innovation and internal management lag challenge, forcing the Chinese commercial banks to consider how to achieve their value added business objectives.Economic value added is the net profit after subtracting all the capital cost. It considers not only the cost of debt capital, but also the cost of equity capital, so it makes the final result really reflect the operating results of the enterprise.This paper introduces the EVA method and discusses the calculation model. Then the EVA performance valuation of the16listed banks during the year2005and the2010are calculated. It shows that the operating performance of commercial banks is not optimistic, and the value of shareholder is damaged in different degrees when the capital cost is considered. The aim of this paper is not only to calculate EVA and EVA returns, but also to analyze the basic factors that drive the EVA of the bank, so we can make the corresponding countermeasure to improve the bank performance. The paper chooses the factors through the macro environment, industry level and internal environment. The results show that, there are six main factors influence the REV A, such as the tax burden, capital, risk management and business structure. Then, some corresponding suggestions are proposed:Commercial banks should promote EVA management concept, build up the operation and performance evaluation system based on the EVA theory. It should be useful to provide valuable reference for business strategy formulation and strategic decision-making.

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The Research on the Risk Prevention of Logistics Finance Business for Commercial Bank in China

On 19/09/2013, in Finance, by rain

With the development of the logistics industry´╝îlogistics and finance demands and effectseach other. The logistics finance business continues to grow and develop, it is becoming a majorbank competing new business field. With the rapid development of logistics finance business incommercial bank by driven profit, the logistics finance risk understanding is far insufficient andthe management of risk prevention is relatively backward. The logistics finance in our country isstill at the initial stage, as a kind of financial innovation, commercial bank is facing the new riskin the process of the development, requires a high degree of awareness of risk, makes a positiveresponse and strengthens the risk prevention.Firstly, the paper explains the general theory of the logistics finance business in commercialbank and risk prevention. Secondly, discusses of risk performance and characteristics forlogistics finance in commercial bank. Further, focuses on the analysis of reasons for logisticsfinancial business risks and risk prevention problems at the present stage. The paper thinks manymain problems of the logistics finance business in commercial bank: risk prevention of physicalexisted defects, failed to establish a risk prevention mechanism, risk prevention of the low levelof technology, risk concept and culture had not been achieved the requirements of the rapiddevelopment of business and risk prevention methods. Lastly, the paper draws lessons from maindeveloped countries the successful experience of risk prevention for logistics financial business,points out countermeasures and suggestions to strengthen the risk prevention of logistics financebusiness for commercial bank in our country, they have mainly five aspects: with a variety ofmethods to make up for the lack of law, introduction of credit self-liquidating technology toreduce the credit risk, from personnel, processes, systems aspects of prevention operational risk,build information technology platform for information sharing, and, establish the risk earlywarning mechanism.

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Commercial Bank Credit Risk Identification and Assessment

On 17/09/2013, in Finance, by rain

In the background of rapid development of economic globalization and in-depth concept of supply chain management, the financial model of chain-supplying is created by the integration of finance and chain-supplying. In the 1990s, the chain-supplying finance was making into practice for the first time, however, this financial model developed much later in China:it started in the early 21st century. The main financial participant of the supply chain finance includes the following parts:the commercial bank, the SMEs and the core enterprises, with the creation and the development of the supply chain, its development not only play a positive role in solving the financial problem of SMEs, but also provide some opportunities for the commercial banks, what is more, it also bring some positive influence in improving capital efficiency for the core enterprises.In the past few years, the commercial bank assessed the SMEs according to collect the main information of SMEs, to analyze of financial data and to pay some attention to the collateral material, etc, moreover, the chain supplying financial model tries to seek a new way to assess the credit crisis of SMEs, to treat the core enterprises in the supply chain-financing model as the main part which needed to be assessed, more important, the stability of whole supply chain are also considered as the related factors. This article research the credit crisis assessment of the commercial bank to small and medium-sized finance corporate. The author pays much attention to find a reasonable way and system of credit crisis assessment of supply-chain financing small and media enterprises according to emphasis the following four aspects:the definition of the supply-chain financing, the recognizing of the supply-chain financing credit crisis, the establishment of the supply-chain financial credit crisis assessment system and the comparative analysis, and to adopt the method of analytic hierarchy efficacy coefficient, and to assess the credit crisis of the traditional financing model. Therefore, some theory supports in terms of supply-chain financing business are provided, in order to cause the business of commercial banks in China operate more reasonable and efficiency.This essay are divided into six chapters:the first chapter described the main background and the practical significance of this article, some domestic and foreign literature review in this essay are outlined following by, at the end of this chapter, some context and concept of this essay are introduced. Theory analysis are the key point in chapter two, in this chapter, the recognition of credit risk and the relevant theory about assessment are elaborated respectively, what was following by was the relevant theory analysis as to the supply-chain financing in four aspects:the definition ans development about the supply-chain financing, the main elements of supply-chain financing, the model of supply-chain financing and the influence of supply-chain financing. The analysis of how to recognize the financial credit crisis of supply-chain are the core element of chapter three, in this chapter, the explanation of supply-chain financing mode are outlined in three points respectively:receivable mode, inventories pledged mode, prepaid receivables mode. The data of chapter four are based on the third chapter to establish rational assessment target system of business financial credit crisis. The fifth chapter indicated some empirical data, first of all, the meaning of different indicator are determined according the analytic hierarchy, secondly, data analysis, which combine the quantitative and qualitative figure analysis, of Hai Tong Machinery Co., Ltd. Chongqing, are shown through two reasonable ways.In the mode of supply chain financial score significantly higher than the traditional financial model score. It can be seen that SMEs themselves comprehensive ability and the general credit situation are not good enough, but if from the perspective of supply chain finance to assessment.it can improve their credit status and credit rating can be raised rely on the core enterprise,achieve the bank’s direct credit conditions. The last chapter: chapter six concluded the whole paper and gave an outlook as well.

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The Empirical Study of Individual Housing Loan Credit Risk

On 15/09/2013, in Finance, by rain

Personal housing loan is a high-quality asset. It is a effective method that adjust the credit quality of the bank. With the rapid development of real estate industry and the rapidly number of individual housing loan, the credit risk exposed gradually. The U.S. subprime mortgage crisis destroyed financial markets. If personal housing loan credit risk accumulated to a certain degree, the outbreak will trigger a domino type chain reaction and finally harm economic security. Analysis individual housing loan default influence factors and improve the credit risk management method is helpful for Banks to increase the safety of credit assets.This article makes empirical research on the individual housing loan credit risk according to the individual housing loan data of the commercial bank in Xi’an from 2005 to 2008 based on the summary of the individual housing loan credit risk research results and related theory which made by domestic and foreign scholars. Firstly, this article analyses the affecting factors of individual housing loan default risk and makes the variance analysis on the selected indexes. This article describes the distribution of the breach and each index through the statistical analysis of the sample data. Secondly, this article carries on the forecast of the individual housing loan credit risk with the application of the proximal support vector machine (PSVM) and proves the practicality and applicability in the prediction of individual housing loan credit risk by constructing a test matrix and attribute matrix and the model test. Finally, proximal support vector machine is evaluated and made model analysis and error analysis limitations, and the suggestions for improvement are put forward.This article draws the following conclusion through the analysis on large amounts of real and effective personal housing loan data:The accuracy rate which predicts whether a personal housing loan borrower breaches by proximal support vector machine is 85.6%, high accuracy and the first kind of the error rate is low. Proximal support vector machine is more rapid and accurate in dealing with a large sample problem than logistic model. Through the evaluation and test on model, this article suggests that proximal support vector machine can give forecast on individual housing loan credit risk.

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The Foreign Exchange Exposure of Chinese Listed Banks

On 14/09/2013, in Finance, by rain

For China’s banking sector, the growing internationalization of Chinese banks in boththeir fundraising activities and banking businesses and the lack of financialinstruments available in the local market for Chinese banks to hedge their foreignexchange risk, together with the structural change in China’s exchange rate regime inJuly2005, may suggest that Chinese banks in general have become increasinglyexposed to foreign exchange risk. At the same time, the trend of financialglobalization and blended banking system force executives step up efforts to establishmore and more overseas’ branches. Given this situation, a comprehensive empiricalstudy on the foreign exchange exposure of Chinese banks could provide usefulinsights for both exchange rate and banking policies in China.After summarizing the research literature of home and abroad, this paper firstqualitatively analysis the definition and classification of foreign exchange exposure,and emphatically introduce two kinds of main methods of quantitative analysis: CashFlow Approach and Capital Market Approach. Respectively, we use the capital marketapproach and the equity price data of16listed Chinese banks in the Chinese stockmarket, and the cash flow approach and the operating income data of14listedChinese banks in the Chinese stock market, using Panel Data Model, considering lagfactors, to measure the foreign exchange exposure of Chinese banking industry inquantitative way.Empirical evidence suggests that the listed Chinese banks are generally exposure toforeign exchange risk when considering the lag effects, not matter using the capitalmarket approach or using the cash flow approach. The result also suggests that thefluctuation of different bilateral exchange rates has different influence on the value oflisted Chinese banks. Together with the fact that decreases in equity values generallyimply a higher default risk, the effects of different scenarios of RMB appreciation onthe default risk of Chinese banks should therefore be closely monitored. At the sametime, this paper also found out that the empirical result obtained from Cash FlowApproach accord closer with the practical situation.

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A Research on Customer Satisfaction Evaluation of Chinese Commercial Banks

On 14/09/2013, in Management, by rain

Since the1970s,the customer satisfaction research has become a hot issue in the field of marketing with its remarkable practical effect.The theory holds that if the customers are satisfied with the products or services of the enterprise,then the customers will develope a degree of loyalty, the accumulated loyalty can keep the customers buying the products of this enterprise,business performance increasing simultaneously.As a service enterprise,commercial banks are strongly influenced by customer satisfaction because of the small product differentiation.At the end of2006,Chinese financial market opened up thoroughly,making the financial regulation relaxed largely and causing severe competition.More and more banks are conscious that improving the customer satisfaction level are becoming a shot cut of raising the competitiveness.At present, there is a gap between domestic banking and advanced banking in developed countries in terms of customer satisfaction management.One of the aspects is the assessment work are not accurate. Customer satisfaction evaluation research refers to the way of assessing the customer satisfaction degree.The concepts of customer satisfaction, customer satisfaction degree,customer satisfaction assessment model and method are reviewed.which establish the theory basis for creating a suitable Chinese commercial bank evaluation model and index system.After analyzing advantages and disadvantages between domestic and foreign commercial banks.the influenced factors.introducing the present customer satisfaction survey research on commercial bank in our country, the author combine CCSI model,PZB model and Chinese scholars’ established evaluation model to create a new theory model, which involes expected quality, perceptive quality,perceptive value,financial products, electronic banking services,customer satisfaction. The index system are constrcted according to the built model,which includes customer satisfaction as the goal layer,4primary indexes,15secondary indexes,34level3indexes.using the analytical hierarchy process to render these weightings. The whole index system is designed to a questionnaire.and a bank branch in shijiazhuang are choosed for empirical research. The index system is proved to be rational through the reliability test and factor analysis.Fuzzy Comprehensive Evaluation is used to calculate the degree of customer satisfaction.Some advice are put forword at last.This paper concludes tow innovation points,one of which is building a brand new commercial bank customer satisfaction assessment model.Another one is designing a set of commercial bank customer satisfaction assessment index system fit for China.I hope the innovations will advance the commercial bank customer satisfaction study in China,and provide effective reference to the commercial bank customer satisfaction management work.

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The Research of Financial Agriculture-supporting Efficiency for Chinese Commercial Banks with the SFA Method

On 13/09/2013, in Finance, by rain

Since the founding of new China for60years, the social economy has made great development. Especially, the city construction. We experienced the whole period, from scratch to the modern high-speed development. To the contrary.the rural situation is worth worrying.In the history, the country get so many source for urban development. It made the rural economy’s development backward. In order to protect social stability and development, the country give support to rural economy in recent years. Their focus is intervention and support to the rural financial market.Under the macro control of the national financial authoritieies,various properties of the financial system and institutions to cooperate with each other,and make great contribution to the new socialist rural financial system formation. This paper mainly discusses the role of commercial banks in rural financial system.In the first chapter, this article has analyzed themeaning of entrance for commercial bank in China’s rural financial market.Under the national attention and concern, the intervention of commercial banks in rural financial market will meet the financial needs of rural micro economy and make progress for rural financial market. Then the paper focuses on SFA method to evaluate the efficiency of financial institutions and research the status, make some comments on the some writers’ thought, framework and innovation.The second chapter is the theory elaborate for the commercial banks to support agriculture efficiency. Includes the theory support(it mainly from financial market of agriculture and.here mainly through the two aspects, one is the commercial bank to support agriculture the main theoretical basis (the main theoretical source for agricultural financial market theory and Market of not complete competition theory) and China’s special financial nature under’3-parts’framework.The third chapter mainly elaborates the explanation of financial institution. Then It make introduction to the SFA method and the cause of selecting the method.next we build framework to support efficiency evaluation system. The fourth chapter through the data analy of situation of the commercial bank for rural financial. It mainly analysis from angle of agricultural loan scale, the net flow of funds statistics, the number of agencies, network coverage and structure of personnel statistics, assets and profitability and intermediate business and scale. Then elaborated in the the main problems and difficulties of commercial banksThe fifth chapter is the key chapter, finally made measurement and evaluation through the Agricultural Bank, rural commercial banks, postal savings bank2003-2010years related panel and data.Then analyses the related factors. To conclude, there are two aspects to influence rural commercial bank profit.First is inner syterm its assets, the ratio of non-performing assets and other factors, Another is restructuring, listing, financial evolution. In the agriculture efficiency, Commercial Bank of agriculture-related funds return efficiency, credit structure, regional economic development and agricultural enterprises/farmer loan ratio (indirectly affect the quality of assets).The sixth chapter summarizes the analysis result to propose and some suggestions.

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The Application Problems and Countermeasures of Chinese Commercial Banks’ Mezzanine Financing Business

On 13/09/2013, in Finance, by rain

Since the1980s, with the development of liberalization and globalization of the financial sector in developed countries, the financial instruments have developed rapidly. Making financial separation of operating system in the world’s major economies is difficult to continue mainstream status. Mixed operation to replace the separate operation is become an irreversible trend. Meanwhile the demands of customers on financial products are diversified and differentiated with the development of economics, and put forward higher requirements for financial services. Commercial banks have to accelerate the pace of business innovation, provide high-quality financial services, like project financing, financial advisers, restructuring mergers and acquisitions and so on. Then they can truly participate in competition of quality customers. Commercial banking and investment banking within the financial institutions cross-complementary, integrated operation in the business is the development trend of the contemporary international banking. Mezzanine financing as one of private equity investment business has flexible structure. China’s financial environment is separate supervision, commercial banks through mezzanine financing involved in high value-added direct equity investment business with high feasibility. Not only to broaden the channels of intermediate business income, more importantly is that it can accelerate the pace of comprehensive management, and enhance their competitiveness.Against this background understanding of mezzanine finance, learning how to use innovative financial instruments. Analysis of commercial banks to carry out the mezzanine finance business is able to adapt to the rapid development of the economic globalization. The problems in the practical application of China’s commercial banks, causes of the problems and appropriate measures, these are the goal of this thesis. Firstly, through documentary research I review and comment mezzanine financing business research literature both china and foreign. Analysis of domestic and international research results and inadequacies, and raised the research background and significance of the thesis.Foreign academic circles on the choice of corporate finance and its influencing factors have done a lot of theoretical and empirical research. Focus on the micro level to analyze the reasons for the formation of mezzanine financing and various means of financing, use case analysis the actual role of mezzanine financing. In China, Zhang Li and Wu Kai think that mezzanine financing as a financing innovation is the bridge of the commercial banks from traditional banking business to investment banking, and mezzanine financing business in a great deal of practical and feasible.Then through the method of descriptive research to introduce the concept of mezzanine financing, characteristics, form, interest return and applicable conditions. Proposed the theoretical basis of mezzanine financing with combining the point of view of domestic and foreign scholars, they are pecking order theory, agency cost theory, control right theory and signaling theory. Analysis the background, causes and basic approach of China’s commercial banks to carry out the mezzanine financing business, and proposed the problems.Including government intervention excessive and imperfect policy, the missing of industry regulator and specification, exit difficult, source of quality projects is scarcity, facing many risks, capital restrictions for the financing of commercial banks,and so on. From the points of view as the legal system, capital markets, credit rating system and commercial banks analysis the causes. Mezzanine financing is a new means of financing, there aren’t corresponding policies and regulations, relevant laws and regulations are not clear, and Chinese capital market is not perfect. More importantly, China’s commercial banks have some problems.For example, Mezzanine financing business is immature, lack experiences of business design and risk management, and often emphasis on income and ignores the risk. Finally, use the experience method, describing the practice of the United States and Europe.These countries amend specifically legal to help commercial bank to make mixed operation, government involvement in the development of PE, combined with multi-pronged closely monitor, mezzanine finance business matures of Europe and the United States are matures. Summary of the practices of mezzanine financing business of commercial banks in Europe and the United States, on the basis of learning from the advanced experience, according to the actual situation of China’s commercial banks proposed views. It is necessary to improve relevant laws and regulations, establish policy protection mechanism, and form an effective capital market system. To build advanced risk control concept, use sound risk control procedures, form highly qualified management personnel. The commercial banks should take effective measures to develop the mezzanine financing business. For example, recruiting and training outstanding professionals, and to establish strategic alliances, mergers and acquisitions or establish trust companies, etc.Mezzanine financing as an important financing has dual characteristics of equity and debt, ought to be developed in China. China’s commercial banks have to adapt to the changes of financial market, to survive and develop in the fierce competition, adapt to the trend of mixed operation, mezzanine finance business is a good choice. In summary, China’s commercial banks to carry out the mezzanine finance business have reality and feasibility. I believe in the near future, China’s commercial banks will play an important role in the development of mezzanine financing, and will be mainly institutional investors of mezzanine finance products.

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A Research on Interest Risk Management of China’s Commercial Bank

On 13/09/2013, in Finance, by rain

Commercial banks is an financial industry which offers money borrow and lend services, this feature in China is more obvious, the main source of income is interest revenue achieved on average70%-80%in china, interest rate is almost the only tool in Monetary policy. The impact to economic is more obvious.The pricing of assets and liabilities would be impacted by interest rate changes. Commercial bank as a profit-seeking business, need response to interest rate changes, find a way immune to the risks posed by changes in interest rates. It’s not only the needs of commercial bank risk theory, but also the requirements of commercial banks to meet the increasingly fierce competition.China’s interest rate market-oriented continues to accelerate, it put forward higher requirements the business model of China’s commercial banks, asset and liability management, risk management, internal control management mechanism, especially for interest rate risk management.This article based on the interest rate market-oriented, Proceed from the interest rate theory, with the duration model as the foundation to analyze the sensitivity to changes in interest rates of commercial banks and the dependence on the spread, then analysed the contents of the commercial banks to interest rate risk. Then made a comparative analysis of key descriptions on the more popular interest rate risk measurement tools:the interest rate sensitivity gap, VAR analysis, the model of the duration, especially on the duration. Focus on analysis of the applicability and feasibility of the F-W duration in China’s interest rate risk management,then introduce the convexity. Build the F-W duration model,use the bond data to calculate the spot rate. Then we select the2011annual report of the Huaxia Bank, and extract the balance sheet and the data processing, duration analysis, and use the EVIEWS, MATLAB statistical software on the data to calculated F-W duration gap and convexity. According to the conclusions give the interest rate risk immunization strategies and the current China’s commercial banks interest rate management count ermeasures.