Zx Bank Of Small And Medium-sized Enterprise Credit Risk Management Research

Nowadays, small and middle enterprise (SME) plays an important role in thedevelopment of world’s economy and society. In China, among the corporate registeredin the bureau for industry and commerce,99%are SME whose value of gross output,sales, tax and export value take60%,57%,40%and60%of the total numberrespectively.75%job opportunities in cities and towns are provided by SME.Stimulating the development of SME will benefit the economic growth, increase of jobopportunity and social stability. Thus, lots of commercial banks have established thedepartment specialized in designing products, optimizing service procedure for SME,leveraging resource to SME. However, due to various kinds of reasons such as the fastchange of economic environment, the small scale of SME, low risk resistance capacityand weak management structure etc, the credit risk of SME appears, because of which,it’s important and urgent to analyze and manage the credit risk of SME for commercialbanks.This thesis discusses the credit risk of SME and analyzes cases occurring inpractice of zx bank, trying to propose suggestions to the management of credit risk ofSME in commercial banks. The thesis can be divided into7chapters. The first chapteris the Introduction illustrating the background and structure of this thesis. The secondchapter is general description of the finance for SME in China. The third chapteranalyzes the demand and supply of credit facility to SME in commercial banks. Thefifth and sixth chapters are the key parts which are also the innovative ones. The fifthchapter studies the case of an enterprise in the construction industry from theperspectives of industry risk, management risk and financial risk, analyzing thepotential risk of the company and assessing the risk of financing, investment andliquidity from the angle of commercial banks. The sixth chapter proposes suggestions tothe management of credit risk of SME through concluding the case study. The seventhchapter is the conclusion. It’s hoped that this thesis could provide reference fordomestic commercial banks in the aspect of credit management of SME.