Principles and Practices of Loan Risk Classification (Second Edition)

Author: Wang Jun et al.
Publisher:
Publish Date: 2002-06-21
Features: Loan risk classification is a highly practical activity that requires on-site inspections to ensure the authenticity and reliability of the classification results. To achieve rigorous and effective on-site inspections, a standardized set of procedures and methods is necessary. Based on years of practical experience and by introducing and learning from international practices, we have developed a feasible on-site inspection tool. This tool covers the entire process, including preparation before on-site inspections, implementation of on-site inspections, on-site inspection reports, and the organization of on-site inspection records. It is suitable for general, routine on-site inspections as well as on-site inspections for loan risk classification. We now present this tool on a CD to recommend it to readers, encouraging them to actively use and widely disseminate it, contributing to the standardization of on-site inspections for loan risk classification. [Editor's Recommendation] The book "Principles and Practices of Loan Risk Classification" introduces a loan classification method that aligns with international practices, categorizing loans into five classes: Normal, Watchlist, Subprime, Doubtful, and Loss. This provides an important theoretical basis for the central bank to regulate the asset quality of commercial banks.