债务分析.doc28

Loan Decisions and Financial Information

I. Existing loan decisions:
1. Loan Approvals:
2. Loan Monitoring:
3. Loan Terminations:
II. The classification of existing loans into loan categories:
A. Current: normal acceptable banking risk.
B. Especially mentioned: evidence of weakness in the borrowers’ financial condition or an unrealistic repayment schedule.
C. Substandard: severely adverse trends or developments of a financial, managerial, economic, or political nature that require prompt corrective actions.
D. Doubtful: full repayment of the loan appears to be questionable. Some eventual loss seems likely. Interest is not accrued.
E. Loss: loan is regarded as uncollectible.

Dietrich and Kaplan (1982) proposed a simple linear model which can replicate the judgement used in classifying the loan risk. The model:

Yi = -3.90 + 6.42 DEi - 1.12 FCCi + 0.664 Sdi

where

DEi = Total debt/total assets
FCCi = funds from operation/(interest + minimum rental commitment + average debt maturing within th

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