Bank Credit Credit Risk Analysis and Measurement

Author: Wang Qichang
Publisher:
Publish Date: 2005-11-01
Features: When business personnel in financial institutions engage in credit, bank acceptance drafts, factoring, letters of credit, trust investment, and credit risk insurance, how should they analyze and measure the credit risk of counterparties? How can they avoid credit cycles being synchronized with the economic cycle? This book transforms the basic principles of economics and finance into practical and operational specific methods. For example, it explains how to identify the authenticity and quality of corporate financial statements, the calculation methods for economic value added, how to detect improper related-party transactions within corporate groups, how to judge corporate competitiveness from different perspectives, and how to analyze industry agglomeration risks. Under open economic conditions, it warns about the transmission of credit risk through the interplay of international industries, exchange rate fluctuations, cross-border investments, and capital free flow leading to asset price volatility. The book also explores and introduces qualitative and quantitative methods for analyzing and measuring credit risk from the perspectives of individual loans and credit asset portfolios. "Give a man a fish, and you feed him for a day; teach a man to fish, and you feed him for a lifetime." Therefore, this book is highly practical and enlightening for relevant professionals in financial institutions and theoretical researchers. It transforms the basic principles of economics and finance into practical and operational specific methods, covering the calculation methods of economic value added, the analysis of industry agglomeration risks, and the impact of capital free flow on asset price volatility.