Research On Credit Management Of City Commercial Banks For Small And Middle Size Enterprises

Since its entry of WTO in 2001, China has been in the post-WTO era. The operation of mixed businesses has been the major trend in Chinese financing development. In such circumstances, city commercial banks with numerals problems will face a great challenge from the international competition, and the unprecedented development opportunities as well. Middle and small size enterprises have been the mainstay of China's sustainable and stable growing national economy. However, they have been in the trouble of difficult financing for a long time. Meanwhile,They reserves tremendous potential of credit business. City commercial banks can further remove the unequal information by setting up a long term business relation with middle and small size enterprises, owing to their features, such as localization, a close regional contact with customers, acquaintance with client credit and operation situation, and flexible decision-making system. Thus city commercial banks have comparatively advantages in the financing market of middle and small size enterprises. Therefore, under the situation of capital constriction, developing middle and small size enterprises'market and increasing the profit-making level to the utmost is not only beneficial for improving and solving problems in city commercial banks, but also a key to solve the difficult financing situations of middle and small size enterprises. For this reason, it is practical and significant that the thesis analyses the implementation and management of middle and small size enterprises'credit in city commercial banks from the view of investment banks, and innovative implementation of products and service.Combining with the coming situation of mixed businesses operation in Chinese financial industry after China's entry of WTO, the thesis is based on the actual situation of Chinese city commercial banks and middle and small size enterprises. It puts forward a countermeasure of credit management operation in middle and small size enterprises and necessary framework of insurance system, which are in line with the features of Chinese city commercial banks. The layout of the exposition is as follows.Firstly, it raises the background of the topic. In the mean time, in view of the special credit management of middle and small size enterprises, it sums up the relatedenterprises financial theory and credit risk management theory of commercial banks, which lays a foundation for the whole analysis and argument. In addition, it clarifies the analysis, the thesis's structure and magnificence, and the research direction in the future.Secondly, the thesis analyzes the potential market of credit business in SMEs. Additionally, it discusses separately China's financing situation of middle and small size enterprises and operation situation of city commercial banks. On this base, it suggests that city commercial banks should put their position in the market of middle and small size enterprises so as to build up their core competence. Finally, it expounds on major problems occurred in the current credit management of city commercial banks.Thirdly, the thesis analyzes the specific operation of credit management that is carried out for middle and small size enterprises by city commercial banks in the mixed businesses mode. Moreover, it makes an in-depth and careful discuss on many aspects, such as city commercial banks'using investment banks as a tool to innovate their products and service, developing and marketing middle and small size enterprises customers, setting up an implementation of credibility evaluating system, structure of credit pricing mode, risk control of credit operation, and punishments of bad credit. In the meantime, it proposes the specific operation way.Fourthly, the thesis puts forward the insurance measurements that should be adopted during city commercial banks'carrying out credit management for middle and small size enterprises. It focuses on the research of the following points: city commercial bank should 1) adjust necessarily the organization structure; 2) set up an effective credit management incentive and constraint system; 3) establish an innovative system for financial products and service; and 4) build up a customers relationship management system with middle and small size enterprises and credit risk management information system.The last part is the conclusion.