Study Of Sme Credit Risk Causes And Prevention Mechanism

Small and medium-sized enterprises (SME) have developed quickly in recent years, and have promoted the national economy, eased the pressure of employment, improved the economic structure, animated the urban and rural economy. But, a lot of problems occurred during the development of the SME, and the most serious problem is the financing difficulty due to the high credit risk. So, further study on the causes of the high credit risk can help to build the prevention mechanism, witch is meaningful for the financing difficulty and the market credit order.Through the game model between the bank and the SME, this paper deduce the equilibrium outcome—no repayment, no loan. The game model reveals that the extrinsic factors, such as the loan pattern of the bank, the lack of the legal restrictions, the imperfect social credit management system, have exacerbated the incredibility of the SME. The more important revelation is the essential reason of the credit risk comes from the SME themselves.Then, by empirical analysis of 273 SME on the SME board through the panel-data model, this paper has demonstrated below relationships between non-financial factors and the credit risk: the enterprise size, the circulating stock proportion and the managers' education background are negative with the credit risk; the first shareholders' shareholding proportion is positive with the credit risk; the managerial ownership has no effects on the credit risk.Based on the analysis of the external factors and the internal factors, this paper designs the SME credit risk prevention mechanism: the SME should improve their management and strengthen the credit construction; the banks should develop the relationship-based loans; the legal should punish the incredibility of the SME strictly and protect the benefits of the banks effectively; the government should lead all the different sectors and the credit agencies to speed up the construction of the social credit management system.