financial management
Article 3 of the Financial Rules for Financial Enterprises stipulates: "Financial enterprises shall, according to the provisions of these Rules and the needs of their own development, establish and improve their internal financial management systems, set up financial management functional departments and equip professional financial management personnel, and comprehensively use planning, forecasting, planning, budgeting, control, supervision, assessment, evaluation and analysis to raise funds, operate assets, control costs, distribute income, allocate resources and reflect. [ 1]
basic requirement
1. Establish and improve the internal financial management system. Including the basic financial system of financial enterprises and internal regulations and measures on fund management, asset management, cost management, expense management, non-operating revenue and expenditure management, income management and so on.
2. Establish financial management functional departments. In order to centrally manage financial matters and distinguish responsibilities, financial enterprises should set up financial management functional departments to specifically perform the financial management functions of financial enterprise operators and bear corresponding responsibilities.
3. Equipped with professional financial management personnel. Personnel engaged in financial management in financial enterprises must be professionals who are familiar with financial accounting knowledge and have accounting qualifications.
basic approach
The basic methods of financial management include planning, forecasting, planning, budgeting, control, supervision, assessment, evaluation and analysis, which is one of the basic signs that financial management is different from accounting management.
basic elements
The Detailed Rules divides the elements of financial management into six aspects: risk prevention and control, fund raising, asset operation, cost control, income distribution and information management, and puts forward standard requirements one by one.
2 financial statements
Financial enterprises (including precious metal stocks, foreign exchange spot and a series of derivatives)
● Balance sheet
A. sources of funds for financial enterprises:
All kinds of deposits, including current or fixed deposits of enterprises, government organizations and residents;
B. interbank borrowing and deposit by financial institutions;
C. Remittances should be remitted or remitted;
D. issuing bonds to raise funds;
E own funds, including capital and realized profits.
B. Capital occupation of financial enterprises:
A, cash and precious metals;
B various loans, including long-term and short-term loans to enterprises, government organizations and residents;
C. interbank borrowing and current financial structure occupation;
D. accounts receivable;
E. purchase of securities;
F leased assets, including financing leased assets and operating leased assets;
G. deposit risk reserve.
● Income statement
I. Income of financial enterprises:
I. Loan interest income;
B. Interest income from inter-bank transactions;
C. fee income;
D. income from price difference in securities trading;
E. net income from financial leasing business;
F. exchange gains from buying and selling foreign exchange;
G. income from other consulting services.
B. Financial business expenses:
1. Deposit interest expense;
B. Inter-bank interest expense;
C. commission expenses;
D. operating expenses;
E. exchange losses;
F, securities trading losses;
G. other operating expenses.
● Cash flow statement
A. Cash inflow of financial enterprises:
A. absorbing deposits;
B. Recovered loan principal and interest;
C. interbank borrowing funds;
D. selling securities investment;
E. Disposal of fixed assets;
F. others.
B. Cash outflow from financial enterprises:
A. granting loans;
B. Withdraw the principal and interest from the deposit;
C. interbank borrowing;
D. securities investment;
E. purchase of assets;
F. others.
3 Debt ratio
The debt ratio of financial enterprises is relatively high, generally around 90%.
The self-owned capital requirement of financial enterprises shall not be less than a certain proportion, usually 8%.
● Capital adequacy ratio
Capital adequacy ratio is the ratio of total capital to total risk-weighted assets, which mainly measures its strength and anti-risk ability.
Capital adequacy ratio = (core capital+tier 2 capital) monthly balance ÷ (asset amount × risk weight) × 100%.
A core capital: refers to the sum of paid-in capital, capital reserve, surplus reserve and undistributed profit.
B Tier 2 capital: refers to the sum of bad debt reserve, bad debt reserve, asset appraisal reserve and accumulated depreciation.
C. Total risk-weighted assets: refers to the total risk assets of financial enterprises after weighted conversion according to their risk weights.
D generally speaking, the risk weight of cash is 0, and its weighted risk assets are also 0; The risk weight of secured loans of policy banks is 10%, and that of secured loans of other financial institutions is 20%; The risk weight of loans secured by non-financial institutions is 50%; The risk weight of credit loans is 100%.
E the capital adequacy ratio of general banks shall not be less than 8%, and the ratio of core capital to risk-weighted assets shall not be less than 4%.
F. An important meaning of capital adequacy ratio management is to require that the asset expansion of financial enterprises should not exceed 12.5 times of capital. If the asset scale exceeds this multiple, assets (loans) should be reduced or capital should be increased.
● loan-to-deposit ratio
Loan-to-deposit ratio can control the source and occupation of funds as a whole.
Loan-to-deposit ratio = total monthly balance of various loans/total monthly balance of various deposits × 100%.
Loan-to-deposit ratio = average increase of loans/average increase of deposits at the end of ten days × 100%.
A. Average increase at the end of ten days = (early increase at the end+middle increase at the end+late increase) ÷3
B Generally speaking, the loan-to-deposit ratio of a bank should be less than or equal to 75%, but due to historical reasons, the loan-to-deposit ratio of the four major commercial banks in China has exceeded 75%.
● Medium and long-term loan ratio
The ratio of medium and long-term loans reflects the strength of asset liquidity. The lower the ratio, the stronger the liquidity of assets.
Medium-and long-term loan ratio = average balance of medium-and long-term loans with remaining loan term of 1 year and above ÷ average balance of deposits with remaining loan term of 1 year and above × 100%.
A, the general requirements of this index shall not exceed120%;
B, this indicator is an important indicator to ensure the security and liquidity of bank credit assets;
C. This indicator is also an important indicator to reflect the change of investment scale of fixed assets.
● Asset liquidity ratio
The liquidity ratio of assets reflects an important indicator of the bank's ability to pay, and it is also a control indicator to ensure the bank's solvency.
Asset liquidity ratio = average balance of current assets at the end of ten days/average balance of current liabilities at the end of ten days × 100%.
Note: This index requires: under normal circumstances, it shall not be less than 25%; This requirement can be raised when inflation and interest rates fall.
● Proportion of reserve funds
The proportion of reserve funds reveals the degree of guarantee for deposit withdrawal by banks, and it is also an important indicator reflecting the ability of banks to pay.
Tier 1 reserve ratio = (central bank deposits+cash on hand) ÷ various deposits × 100%.
Tier 2 reserve ratio = (purchased treasury bonds+policy financial bonds+People's Bank financing bonds) ÷ various deposits × 100%.
A, the level of the index is generally not less than 5%, the people's Bank of China requirements should be between 5% and 7%.
B, usually the sum of deposits and cash on hand of the People's Bank of China is called Tier 1 reserve, while the sum of government bonds, policy financial bonds and financing bills of the People's Bank of China is called Tier 2 reserve.
C all deposits are the average balance of all deposits.
● Personal loan ratio
A, the proportion of a single loan is the proportion of the loan balance of the same customer to the total bank capital. Generally, it is required not to exceed 15% to spread the loan risk.
B under normal circumstances, the ratio of total loans to total capital of former 10 major customers shall not exceed 50%.
The total loan amount of a single project shall not exceed 50% of the total investment of the project.
D the total loan demand of the largest 10 customer shall not exceed 50% of the total bank loans.
● Proportion of borrowing funds
Borrowed funds ratio = average balance of borrowed funds/average balance of various deposits × 100%.
Proportion of lent funds = average balance of lent funds at the end of ten days ÷ (deposit-deposit reserve-reserve fund-interbank funds) × 100% at the end of ten days.
Note: The People's Bank of China requires that the proportion of borrowed funds should not exceed 4% and that of lent funds should not exceed 8%.
● Loan quality ratio
Proportion of overdue loans = average balance of overdue loans at the end of the month ÷ average balance of various loans at the end of the month × 100% (no more than 8%)
Dull loan ratio = average balance of dull loans at the end of the month ÷ average balance of various loans at the end of the month × 100% (no more than 3%)
Non-performing loan ratio = average balance of non-performing loans at the end of the month ÷ average balance of various loans at the end of the month × 100% (no more than 1%)
● Other proportions
(9) Risk-weighted asset ratio = month-end balance of all risk-weighted assets/month-end balance of total assets × 100% (no more than 60%)
(10) Loan ratio to shareholders: The loan balance required to be provided to shareholders shall not exceed 100% of their capital contribution. At the same time,
It is also required that the loan conditions for shareholders shall not be superior to similar loans from other customers.
(1 1) Capital loss rate = sum of all capital losses of overdue loans in the reporting period ÷ total assets in the same period × 100%.
(12) Debt cost ratio = expenses in the reporting period ÷ total liabilities in the same period × 100%.
A. Various costs and expenses include: interest expenses, current expenses of financial enterprises, handling fees, operating expenses, exchange losses and other operating expenses.
B. Total liabilities are the sum of current liabilities (minus financial deposits), long-term liabilities and other liabilities in the balance sheet.
C. reflect the cost paid by banks to absorb various deposits.
(13) Profit rate of assets = total profit in the reporting period ÷ month-end balance of credit assets in the same period × 100%.
Note: Credit assets are the difference between total assets minus institutional government investment, fixed assets, financial deposits and institutional loans. Generally, the index is required to be greater than 1%.
(14) paid-in interest rate = (interest income in the reporting period-interest receivable-operating income to be transferred) ÷ sum of interest receivable of various loans in the same period × 100%.
4 Financial analysis
debt paying ability
I. Liquidity indicators:
A. Liquidation ratio: reflects the proportion of assets that an enterprise can realize immediately.
Liquidity ratio = total cash and deposits/current liabilities × 100%
Note: It is generally believed internationally that the index value should be between 15% and 20%; For financial enterprises that have no savings deposit business, this indicator should not be used.
B. Deposit payment guarantee rate: indicates how much of the deposit is used for loans and how much is used for daily payment.
Deposit payment guarantee rate = total loans in current assets ÷ total current liabilities × 100%.
1. Total loans include loan trade, short-term loans, receivables, short-term investments, entrusted loans and investments.
Two. In general, the index of banks mainly engaged in credit risk business (such as commercial banks) is higher, generally around 80%, but it is lower in banks specializing in trust loans or long-term investment business.
Three. If the index exceeds 100%, it means that there is no cash deposit guarantee to withdraw deposits; If it is less than 70%, it may be that there are too many deposits, or that the bank has borrowed too much money, which is not good for the bank's profits.
B, financial security indicators:
A independence index = total owner's equity ÷ total assets × 100%
Note: The higher the ratio, the faster the development ability of banks may be; In foreign countries, it is generally considered that it is abnormal to exceed 9% or 10%, indicating that the deposit business of enterprises is not ideal. If it is less than 5%, it means that there is not much room for asset scheduling.
B. Risk tolerance index = total owner's equity ÷ total loan × 100% (generally around 15% is better).
C. Profit rate of self-owned funds:
production capacity
A, net interest rate = (interest income-interest expense) ÷ interest income × 100%.
A, the higher the index, the stronger the profitability of banking business, generally should not be less than 10%.
B Under normal circumstances, net income and interest income (gross income) should increase and decrease synchronously. However, if one of the interest rate, special items and loan loss reserve changes, it may increase or decrease asynchronously. Generally, the unsynchronized amplitude should not exceed 4% ~ 6%.
B return on assets = total realized profits ÷ total assets × 100%.
Note: Generally speaking, the index of investment banks is higher than that of commercial banks and savings banks. The minimum index required by foreign countries cannot be lower than 1%.
C. Profit rate of funds: it reflects the capital benefit of bank operation, that is, the interest rate of the bank's own funds after 1 year. Profit rate of self-owned funds = total profits ÷ total self-owned funds × 100%
managerial effectiveness
Ratio of loan loss reserve to total loan:
Note: This indicator reflects the ability of banks to cope with loan risks; The higher the loan loss reserve, the higher the risk of loan business, or the bank is too cautious; If the index exceeds 1%, it means that the quality of loan business is poor; Too low is not good, too low means that banks have not prepared enough funds to deal with possible loan losses.
B ratio of bad debt losses to total loans: refers to the ratio of bad debt loans covered by loan loss reserve to total loans in a certain period. If the fluctuation is too large, find out the reason.
C ratio of net operating income to bad debt loss: it reflects the net profit created by the bank after clearing the bad debt loss. The higher the index, the better.
5 Credit rating
Rating indicators are usually designed by rating agencies themselves, generally including credit indicators, financial indicators and development ability indicators.
Credit rating is usually divided into four levels: A, B, C and D, and the same level is often divided into three levels, such as AAA, AA and A in A level.
Credit index
A. Goodwill: refers to the implementation of contracts and agreements, which is divided into four grades: good, good, average and poor, and is generally determined according to past experience and social surveys.
B. Credit of enterprises in banks: including repayment records and settlement records of enterprises in banks. The loan repayment record is determined as excellent, good, average and poor according to the overdue and interest-owed records of the enterprise; The bank settlement record can be measured by the average loan-to-deposit ratio of the enterprise in the bank (that is, settlement record = average deposit and loan balance of the bank). When the ratio is more than 50%, it is excellent, 50% ~ 30% is good, 30% ~ 10% is average, and the difference is below 10%.
C. Credit of enterprise leaders: according to the moral character and reputation of enterprise leaders, four grades are determined: excellent, good, average and poor.
financial target
A. net assets: reflect the overall strength of the enterprise.
For real estate enterprises, if the first level is 65.438 billion yuan, the second level is 65.438 billion yuan to 50 million yuan, the third level is 50 million yuan to 6.5438 billion yuan, and the fourth level is below 6.5438 billion yuan.
B. Asset-liability ratio: It reflects the economic independence of the enterprise.
Grade I: within 30%; Grade II: 30% ~ 50%; Grade III: 50% ~ 70%; Level 4: greater than 70%.
C. Asset current ratio: reflecting the solvency of the enterprise. Determine the grade value according to different industries.
D. Turnover times of accounts receivable: it reflects the activity and solvency of the enterprise. Determine the grade value according to different industries.
E. Inventory turnover times: reflecting the sales and production situation and solvency of the enterprise. Determine the grade value according to different industries.
F. Profit rate of assets: reflecting the efficiency of enterprise asset management.
Grade I: more than 50%; Grade II: 50% ~ 30%; Grade III: 30% ~10%; Level 4: less than 10%.
Ability index
A. quality of enterprise: management level, technical level, staff quality, adaptability, etc. It can be divided into excellent, good, average and poor.
B. Enterprise status: enterprise popularity, market share, relationship between enterprise and government, etc. It can be divided into excellent, good, average and poor.
C. Intangible assets of enterprises: patents, trademarks, geographical locations, etc.
D, enterprise mortgage assets: refers to the ratio of loan amount secured by enterprise assets to enterprise net assets, reflecting the enterprise's creativity and development ability.
Indicator value rating: level 1: 0; Grade II: less than10%; Grade III:10% ~ 30%; Level 4: greater than 30%.
On the basis of determining the credit index, financial index and enterprise development ability index, the weight of each index is determined according to the characteristics of the evaluated unit and the importance of each index, and then the total score is weighted to determine its credit rating.