The Significance of Financial Analysis in Minimizing the Credit Loss in Corporate Banking
Mäki-Fränti, Markus (2021)
Mäki-Fränti, Markus
2021
Julkaisu on tekijänoikeussäännösten alainen. Teosta voi lukea ja tulostaa henkilökohtaista käyttöä varten. Käyttö kaupallisiin tarkoituksiin on kielletty.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2021111255015
https://urn.fi/URN:NBN:fi-fe2021111255015
Tiivistelmä
The purpose of this thesis was to investigate how banks utilize financial analysis with the aim to minimize credit risks among corporate customers. Firstly, the thesis gives a theoretical framework concerning such issues that are related to this area of study. Secondly, eleven managers who work in close co-operation with corporate customers in banking are interviewed. A summary of the analyses is provided with the aim to demonstrate the role of information related to accounting in credit decisions.
Regarding useful information in the context of credit risk management, the financial statements of a company are the main source. The amount of information is vast, but is it enough? As financial statements are based on numbers, they cannot be considered capable of giving a holistic picture of the situation of a company. Additionally, for example the branch of a company, manufacturing process, and perspective are also something that can be seen as core details. Therefore, the research question in this thesis is formulated as follows:
How does financial analysis affect the credit rating of corporate customers in banking?
The method of the thesis is a case study which was executed by using a semi-structured interview concept, supplemented with problem-driven content analysis. The results of the thesis are based on the point of view. From the researcher’s own point of view, the thesis yielded such results the researcher expected. Nevertheless, the discussions were on a basic level which does not support the aspiration concerning an in-depth analysis.
As a result, the role of financial analysis in credit risk minimizing was found. The benefits that appeared during this process are also handled, as well as the core elements in accounting information from the point of view of banks.
Regarding useful information in the context of credit risk management, the financial statements of a company are the main source. The amount of information is vast, but is it enough? As financial statements are based on numbers, they cannot be considered capable of giving a holistic picture of the situation of a company. Additionally, for example the branch of a company, manufacturing process, and perspective are also something that can be seen as core details. Therefore, the research question in this thesis is formulated as follows:
How does financial analysis affect the credit rating of corporate customers in banking?
The method of the thesis is a case study which was executed by using a semi-structured interview concept, supplemented with problem-driven content analysis. The results of the thesis are based on the point of view. From the researcher’s own point of view, the thesis yielded such results the researcher expected. Nevertheless, the discussions were on a basic level which does not support the aspiration concerning an in-depth analysis.
As a result, the role of financial analysis in credit risk minimizing was found. The benefits that appeared during this process are also handled, as well as the core elements in accounting information from the point of view of banks.
Kokoelmat
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