Research On The Bank Credit Rating System Based On Financing Of Small & Medium-size Enterprise

In this paper, the author has made a concise description of the concepts,structure and characteristics of financing of small and medium-size enterprise,made an instruction to the present situation of financing of small and medium-size enterprise of our country and the main reasons that cause the difficulty in financing of small and medium-size enterprise. Using the experience of developed country solving the difficulty in financing of small and medium-size enterprise, the author generalize the ways to finance effectively for medium and small-size enterprise in our country, put forward the key method to get financial supporting for medium and small-size enterprise is that how our banks can set up a effective credit rating system so that it can dispel misgiving of bank in the cause of the loaning to medium and small-size enterprise.The credit rating system mainly includes credit rating method,collecting date, building information system and the credit risk controlling process & organization frame. The core of credit rating system is credit rating method; the others are used around a certain credit rating method. The author has introduced some credit risk models, which had been used in the foreign banks, analyze the characteristics of these models, raise that the RAROC model should become a main credit rating method in our banks at present. The author also introduces how to use RAROC model to measure the degree of loaning risk. At mean time, according to characteristics and current situation of our bank, the author put through that it should be chose date rationally when RAROC model is used, so that it can make full use of this model.The principal idea of this paper is the use of RAROC model and introduces the credit process & organization frame but less discussion on collecting date,building information system and credit rating. At present, the most deficient in credit rating system of our bank is a scientific and quantitative credit rating method. If a rational credit rating method can be found, the credit rating system should be considered as application. Therefore, the author has discussed the credit rating method as the principal line.