A Study On Credit Risk Management Of Bank Small Micro Enterprise

Along with the transformation of economic development mode and upgrade of industry structure, the small-and-micro sized enterprises (hereafter calls SMEs) are playing increasingly important roles in China’s economy, which proves to be a major growth pole of commercial banks. However, as the SMEs have many operational and congenital problems, the pressure of commercial banks to control their credit risks is growing. For this reason, it is of crucial theoretical and realistic significance to China’s commercial banks to reinforce the identification and control ability of SMEs’credit risks and to boost the sound development of SMEs’ credit business.Based on the credit risk management perspective of commercial banks, this paper investigates the credit risk management theories and SMEs management practices of commercial banks in and abroad for reference. In line with the current situation and problems of A bank’s credit risk management of SMEs, following the guideline of "raise, analyze and solve problems", this paper explicitly puts forward the solving principles in the credit risk management system by discussing the root of the problems:First, entirely, actively and systematically set up the implementation procedure of credit risk management system with the core of retail model evaluation. Second, construct the guarantee system of SMEs’ credit risk management with the core problems of which is the strategic transformation, or breaking away from the business of small and medium sized enterprises and defining the retail strategic orientation. Third, this paper proposes the solutions and concrete suggestions by optimizing the credit organization structure, improving credit procedure mode, and developing appropriate credit products of small-and-micro enterprises, so as to exert the functions as a mirror for commercial banks to consummate the credit risk management of small-and-micro enterprises business. This paper consists of seven parts as follows:The first part is Introduction, in which it introduces the background and research significance, contents and methodologies, frameworks and guidelines, together with innovation points. The second part is Theoretical Basis and Literature Review of Domestic and Overseas. The third part mainly analyzes A bank’s current situations of SMEs’ credit risk management, which throws out problems like:being short of appropriate organizational structure, out of specific credit procedure, absence of customized credit products, and lacking systematic risk management mode, the fundamental reason of which is the whole set of credit risk management system for SMEs is above established. The fourth part studies the internal and external causes of the raising problems. On this basis, the fifth part proposes the definition of A bank SMEs’ credit risk management system which specifically includes the principles, contents and functions of this system. Targeting the entire, active and systematic solution, this paper also raises the implementation process of credit risk management system with the nuclear of establishing retail model evaluation hierarchy. The sixth part constructs the corresponding guarantee system on the basis of A bank SMEs’ credit risk management system framework, and it also puts forward the solutions:optimizing SMEs’credit organizational structure, improving SMEs’ credit process mode, developing appropriate SMEs’ credit products, so as to guarantee the effective functions of SMEs credit risk management system. The seventh part gives a conclusion and end up with the next research orientations.