Research On Credit Management Which Based On SMEs Credit Rating Of The A Bank

In recent years, SMEs have become an important foundation for Chinese economicdevelopment. The development of commercial banks has also become the mainactivities of the banks in the lending business of SMEs. However, the loan in defaultrate is rising while the SMEs loan growth having improved continuously due to variousreasons. This paper uses Bank A as an example, through SMEs credit risk management,and to find out the problem, rise the questions and solve the problem from themanagement of credit rating.This paper analysis through these theories: EFE, IFE, financial factors andnon-financial factors, Structural model, Reduced-form model, logistic model. This paperdescribes briefly on the credit rating of SMEs management at present, and figures outthe Bank A needed to establish appropriate credit management system based on thecredit rating of the SMEs, and draws the basic solutions.Firstly, this paper designs the access qualifications of the SMEs loan from theexisting theory study and analysis of the IFE and EFE based on the thinking of solutions.Secondly, this paper designs the Bank A SMEs credit rating score sheet based on thelogistic model from scientific methods. Finally, this paper designs the risk mitigationand the SMEs lending risk limits based on rating results. In summary, the SMEs creditmanagement system of the Bank A has established, through the using of three credit riskmanagement infrastructure tools. The system can be effectively improve the ability ofthe prior assessment of the credit of the SMEs.At last, the paper gives a number of recommendations to the SMEs creditmanagement of the Bank A, hopes to enhance the SMEs management level of the BankA, and to helps the Bank A to build a scientific and effective risk management andcontrol mode, in order to make sure the robustness of the compliance of the SMEsbusiness.