Small And Medium Enterprises Credit Risk Research For Commercial Banks

Own to SME’s own limitations and the external situation, it’s difficult for SMEs to loan from commercial banks, especially in the current credit crunch. And the cost of borrowing exceeds the load of most enterprises, which makes that the current SME loan difficult, not the loan is also difficult. However, from the point of banks, their business objective is that reducing the risk of loans and pursuing the profit maximization at the same time. Therefore, building an efficient and accurate evaluation model of SME credit risk for the commercial banks has important practical and theoretical significance.The purpose of this study is to establish an effective and practical evaluation model of SME credit risk for the commercial banks. To achieve this, on the basis of previous studies and theoretical analysis, combining with the characteristics of the SME credit risk, this paper builds the three index system to evaluate SME credit risk for commercial banks. Then cross-sectional data of the330valid samples of the SME board and GEM in Shenzhen Stock Exchange in2010is selected as the research object for empirical research, using the analytic hierarchy process. In this paper, the data is assembled by the various experts sort the vector weighted arithmetic mean method to determine the weight of17three indicators of evaluation index system. And then it calculates sample business credit score, using the actual value of the17indicators and the weight by the weighted average method and lists corporate credit ranking of SME on SME Board and GEM separately. By empirical analysis, we find that the growth of sales revenue makes the greatest impact on corporate credit, but fixed assets turnover makes the minimal impact on the corporate credit. On the SME board, FULING ZHACAI, DONGLIANG NEW MATERIAL, ANNADA, YIQIAO MARINE and JINXINNONG have higher credit score, but FULIN TRANSPORT, QIANYUAN POWER and WINBASE have lower credit score. And on the GEM, NANFANG PUMP, EASTSOFT, BEILU PHARMACEUTICAL and TOFFLON have higher credit score, but BODE, XINNING LOGITICS, ZAGAME have lower credit score.This paper builds the credit risk assessment system for SME from the point of view of commercial banks so that the banks can provide loans to the good enterprises in need of funding, using the model, which eases the financing difficulties of SMEs by lower borrowing costs.