Legal analysis: the "three checks" of bank loans refer to pre-loan investigation, in-loan examination and post-loan examination. Pre-loan investigation refers to the investigation of the basic situation of the loan applicant before the bank issues the loan, and makes a preliminary judgment on whether it meets the loan conditions and the amount of the loan that can be issued; The focus of the investigation mainly includes the applicant's credit status, business situation, compliance and legality of loan application, loan guarantee, etc. Loan review refers to the examiner's verification and evaluation of the information provided by the investigators, retesting the loan risk, putting forward audit opinions, and performing the examination and approval procedures as required. Post-loan inspection refers to the follow-up investigation and inspection of the borrower's execution of the loan contract and the borrower's operation after the loan is issued. If it is found that the borrower fails to use the loan according to the specified purpose, which leads to an increase in loan risk, the loan may be recovered in advance or relevant preservation measures may be taken. Through the implementation of the "three checks" on loans, it is beneficial for lenders to fully understand and master the borrower's operating conditions and loan risks, discover potential risks in time, and take corresponding risk prevention and control measures to ensure the safety of bank credit funds. At the same time, the implementation of the loan "three checks" system is also an important basis for investigating or exempting relevant responsible personnel after loan risks appear.
Legal basis: People's Republic of China (PRC) Commercial Bank Law.
Article 59 A commercial bank shall, in accordance with relevant regulations, formulate its own business rules and establish and improve its own risk management and internal control system.
Article 60 Commercial banks should establish and improve the auditing and inspection system for deposits, loans, settlement and bad debts. A commercial bank shall regularly audit, inspect and supervise its branches.
Article 61 A commercial bank shall submit its balance sheet, profit and loss statement, other financial accounting and statistical statements and materials to the banking supervision institution of the State Council and the People's Bank of China in accordance with regulations.
Article 62 The the State Council Banking Regulatory Authority has the right to inspect and supervise the deposits, loans, settlement and bad debts of commercial banks at any time in accordance with the provisions of Chapters III, IV and V of this Law. During inspection and supervision, the inspection and supervision personnel shall produce their legal certificates. Commercial banks shall provide financial and accounting materials, business contracts and other information related to operation and management in accordance with the requirements of the State Council Banking Regulatory Authority. The People's Bank of China has the right to inspect and supervise commercial banks according to the provisions of Articles 32 and 34 of the People's Bank of China Law of the People's Republic of China.
Article 63 Commercial banks shall accept the audit supervision of audit institutions according to law.