Credit refers to the funds provided by commercial banks to non-financial institutional customers, or the guarantee made by customers for compensation and payment responsibilities that may arise in relevant economic activities, including loans, trade financing, bill financing, Financial leases, overdrafts, various advances and other on-balance sheet businesses.
As well as bill acceptance, issuance of letters of credit, letters of guarantee, standby letters of credit, confirmations of letters of credit, bond issuance guarantees, loan guarantees, asset sales with recourse, and unused irrevocable loan commitments and other off-balance sheet business.
Extended information
1. Credit application
When the borrower needs credit funds, he should submit a credit application according to the bank's requirements and promise to provide the information Legal and valid.
The main content includes: the basic information of the borrower (borrower name, business scope, financial status, etc.), the basic information of applying for credit (including credit type, amount, term, interest rate, guarantee method, purpose, loan plan and repayment plan, etc.). If project credit is involved, project status should also be provided.
2. Credit acceptance
After receiving relevant information from the borrower, the bank will designate an account manager to accept the application, design credit products based on the borrower's situation, and discuss with the borrower to determine Credit plan.
3. Credit investigation
After the bank determines the credit plan, the account manager will conduct an investigation and collect the borrower’s information (borrower’s credit application, business license, tax registration certificate, Organization code certificate, company articles of association, purchase and sale contracts, bank statements, etc.;
If project credit is involved, project status should be provided), analyze the borrower's credit status, financial status, operating conditions, etc., and evaluate project benefits and the borrower's ability to repay principal and interest.
At the same time, analyze the borrower's guarantee capacity. If mortgage (pledge) is involved, the ownership, market value, mortgage rate, etc. of the mortgage (pledge) must be analyzed. The account manager will write a survey based on the investigation content. report, proposing investigation conclusions and relevant risk control measures.
4. Credit review
The account manager will submit the investigation report to the approval department. The approval department will conduct a risk assessment based on the investigation report and credit-related information, and evaluate the borrower's financial status, operating conditions, The repayment ability and guarantee status will be reviewed, and corresponding prerequisites and management requirements will be set according to the main risks to control the risks within the controllable range.
5. Credit approval
The authorized approver shall make decisions on the investment direction of credit funds, credit amount, term and interest rate in accordance with the principle of "separation of credit approval and step-by-step approval" , sign the approval opinions step by step.
6. Contract signing
The bank and the borrower should sign a loan contract together to clarify the rights and business of both parties. The basic content includes loan type, amount, term, interest rate, Purpose and repayment guarantee, etc.
For guaranteed credit, the bank also needs to sign a guarantee contract with the guarantor. For mortgage (pledge) guaranteed credit, the bank also needs to sign a mortgage (pledge) contract and go through the mortgage procedures.
7. Credit granting
The bank has established an independent department or position responsible for credit review and granting. Before credit is granted, it is necessary to ensure that the borrower meets the contract withdrawal conditions, manage the payment of credit funds in the manner stipulated in the contract, and supervise the actual use of the credit.
8. Credit payment
Banks should set up independent departments or positions to be responsible for credit payment review and payment operations. At present, the entrusted payment method is generally adopted, and the bank pays the credit funds directly to its counterparty through the borrower's account to ensure that the credit is used according to the agreed purpose.
9. Post-loan management
The bank should supervise the borrower’s credit usage, track the borrower’s financial status and repayment ability, and check the validity of the mortgage (pledge) and the guarantor Guarantee capacity, the account manager regularly collects the borrower's financial statements and understands the borrower's actual production and operation status or the actual construction status of the project.
10. Credit withdrawal or disposal
The bank should remind the borrower of the due repayment of principal and interest before the credit expires. For credit extensions, the bank should evaluate the rationality and feasibility of the extension;
If the borrower cannot repay the credit on time due to temporary difficulties, the bank can negotiate with the borrower to restructure the credit; for bad credit, the bank Write-off or preservation disposal methods should be adopted in accordance with regulations.
Baidu Encyclopedia-Bank Credit