Study On Bank Credit Risk Management Of Small And Medium-sized Enterprises

Small and medium-sized enterprises are the important foundation in the development of Chinese economy. At the end of November 2009, they account for more than 99% of all 40 million enterprises in China, creating nearly 60% of GDP (Gross domestic product). With the growing number and value of them, as well as the supportive policy from the government. Therefore, it is important for commercial banks'future if they could seize this opportunity to develop credit business with small and medium-sized enterprises. In this thesis, with the example of small and medium-sized enterprises, it will carry out a research on the credit risk management of credit business with the purpose of improving the risk management standards of commercial banks, so as to further boost the development of small and medium-sized enterprises.On one side, it uses external and internal factor to set a credit extension admittance threshold with regard to small and medium-sized enterprise, besides, it sets up a mode on the assessment system of the small and medium-sized enterprises'credit rating, selecting the evaluation factors and indicators from financial factors and non-financial factors. Through the analysis of the credit demand rationality and reimbursement ability, it also designs the credit limit evaluation model for small and medium-sized enterprises. These modes and systems will estimate the credit risk beforehand and prevent the danger of over credit.On the other side, through the analysis of the bank credit management cost structure, it designs a risk pricing model on the basis of calculating the following aspects, including financing costs, operating costs, risks cost and profit goals, and put forward the risk compensatory mechanism in regard to the quality of loan assets and credit management personnel salary, which enables small and medium-sized enterprises to be compensated for the credit risk, improving the ability of banks to cope with credit risks for small and medium-sized enterprises.Finally, with the help of balanced scorecard, it will set up the evaluation index and the action plan considering to the following four aspects, staff development, internal operation, financial level, customer level, so as to improve the credit performance management mechanism of small and medium-sized enterprises, to promote the healthy development of small and medium-sized enterprises on condition that the credit risk is controllable.