ABSTRACT
Business loan is an important process and main revenue to bank. Loan asset is crucial in balance sheet. Asset quality is relevant to operating security, so bank should enhance the management and evaluation of loan process to ensure the operating security and performance during making a deal with clients. Sound evaluation model could help related staff evaluate the credit of clients and lower overdue loan ratio. IC industry is always the driving industry in Taiwan. Taiwan DRAM revenue, as a second place leader, accounts for more than 20% of world market. The nature of DRAM industry is huge capital, high technology level, fast price variation and those mean high risks during loan. Banks in Taiwan serve DRAM companies very often. In case of overdue loan, bank will be affected heavily. Thus, bank should build evaluation model of loan to ensure the security of loan.
After reviewing related literature, this research identifies key factors of loan decision and invites related bank employees in north Hsin-Chu City to join AHP questionaire. Then this research conducts quantitative analysis through AHP. This research collects 16 bank professionals' opinions. Among 16 there are 6 Consistency Indexes higher than 0.1, so only 10 opinions are accepted.
The result shows 3 main factors in loan evaluation: industrial evaluation, financial analysis and loan evaluation (listed in order). Besides, among overall criteria, the most important 5 are expansion of competitors' factory, ability to raise fund, quick ratio, new application, and collateral. This research proposes the following 4 suggestions:
1. Bank should ask professional industrial research institute for DRAM industrial evolution to reduce the credit risk.
2. The ability to raise fund is relevant to whether DRAM companies could get through the recession. Recent cash flow should be paid attention to.
3. The feasibility of capital expenditure plan should be evaluated as project finance and financial planning should be conducted with sensitivity analysis.
4. Risk cost should be considered when setting DRAM loan rate. Ensure return is consistent with the risk.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0812108-171317 |
| Date | 12 August 2008 |
| Creators | Peng, Wen-shiang |
| Contributors | Dr.Tsuang Kuo, Dr.Hsien-Tang Tsai, Dr.Huei-mei Liang |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0812108-171317 |
| Rights | campus_withheld, Copyright information available at source archive |
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