Study Of Small And Medium Banks Operation Of The Sme Credit Risk

For the commercial banks staff, the operational risk is one field seemingly both familiar and strange. Since the commercial bank was born, the operational risk follows all along its development, and that is why the operational risk is viewed as one crucial part for the three risks the commercial banks are confronted currently. Without the operational risks, it is hard for the credit risk and market risk turn into losses. Taken the Operational Risk Management and Regulatory Prudent Practices issued by Basle Committee as the basic theory, and based on CBRC series of risk management documents, the paper analyzes the current credit operational risk management situation of one small-and-medium sized bank and the necessity to upgrade the operational risk management in small-and-medium sized enterprises. It illustrates that the operational risk control lies in improving the internal control system construction including organization structure, business process, rating method and systematic credit limit determination, as well as credit approving process. And the paper finally raises the method to improve the operational risks embedded in the small-and-medium sized enterprises credit of the small-and-medium sized banks in sequence of credit investigation, credit approving, credit disbursement and follow-up management, and depicts in details the main contents and the operational risk points in every phase, aiming at creating the standard for the different phases in small-and-medium sized credit operation.