| dc.description.abstract | The bank evaluates the credit default risk by using the financial ratios to analyze the financial pointers of the credit customers in practice, and translates the financial ratios into score to provide reference for credit decision making. In order to explore the possible range of financial ratios ensuring credit security or inducing credit default, and confirm the prediction effect of financial ratio score for credit default, this article takes the publicly held corporations outside the financial industries from 1997 to 2016 as the research object differentiated into contrast group without distinguishing whether or not to default totaling 2,181 companies and default group total 55 companies, references financial ratio scoring standard of large enterprises commonly used in bank credit practice, full score in hundred, calculates the score of various financial ratios from four financial aspects including debt-paying ability, financial structure, profitability and operating efficiency, and compares the correlation between the financial ratio score and credit default respectively according to industry, year, contrast group and default group.
The conclusions of this article are as follows:
1.The financial ratio score of contrast group is the average of 75.50. Each industry low and high range is 64.78~80.87. The nature of the industry is different, and the level of financial ratios varies. Each year low and high range is 70.84~79.03. In addition to the financial ratios of the profitability are easy to be influenced by economic boom, the financial ratios of the remaining financial aspects are not much of a fluctuation.
2.The financial ratio score average of default group four years prior to default is 62.88, 60.27, 55.76 and 49.21, significantly downward trend. The score average three years prior to default is 55.08, compared to contrast group average 75.50, margin about 20. Evidently financial ratio score does have a certain degree of prediction effect for bank credit default risk, available for the bank credit risk assessment reference. | en_US |