On Bank Credit Risk Assessment And Prevention Of Small-and-Medium-Sized Enterprises Of Zhejiang Province

Small and medium-sized enterprises'credit financing difficulty is a world problem, which has become the major obstacle against further development of SMEs at the present stage because of such a credit financing difficulty from bank, especially in China. This paper analyzes both the cause of SMEs credit financing difficulty and the origin to restrict bank's credit financing in Zhejiang Province by the current situation of which in home and abroad, indicating that the key reason of the problem is the information dissymmetry between enterprises and bank. This dissymmetry leads to the depletion of SMEs credit, and the lack of effective evaluation to them from bank. Besides, the distinctiveness in SEMs operate decides the many defects in credit rating system of bank to evaluate their credit risks, which represents inapplicable evaluation system and improper evaluation indicator, consequently resulting in that SMEs credit is underrated and further intensifying credit financing difficulty.The paper tries to provide theoretical and technical support solving the credit financing difficulty of SMEs by evaluating their credit risks scientifically, reasonably and effectively, which is based on making a SMEs credit rating system. Meanwhile, the paper has drown on the advanced theory and practical experience in respect of credit rating from abroad and analyzed the character of SMEs in Zhejiang province with their credit risks, advancing a totally new credit rating system fits for SMEs credit risks evaluation and index system.The system divides the index into four aspects, including financial target, account behavior, qualitative indexes and particular item. By means of combination of quantitative analysis and qualitative analysis, this paper gives prominence to scientific quantification of SMEs credit risk, attaches importance to developing capability and business conduct of SMEs, and lays emphasis on enterprise spot investigation and non-financial information gathering, trying to make a true and comprehensive evaluation on credit status of SMEs. Finally, the paper provides an important theoretical foundation for bank to carry out the credit decision and risk prevention based on analyzing and applying the SMEs credit rating results. Finally, this paper presents the credit risk of the SMEs preventive countermeasures and suggestions, and come to the conclusions of this research.