Credit Risk Research Of County Smes Loans

Small and medium-sized enterprises (SMEs) accounted for more than95%of all our enterprises, Whether the development of SMEs is good or not is an important indicator of the status of a real economy. Although the government has issued a number of policies to support SMEs development, the difficulties of SME financing are still unable to get solution. The reason is blocked SMEs financing channels, or the high cost of financing. Most of SMEs take bank loans as the main source of financing, while banks’ management of SME credit risk is poor.The purpose of this study is to assess the credit risk of loans to SMEs, to identify important factors as related research, banking and risk management, and enterprise reference to prevent their own risk. Around the problem, already identify SME loan credit risk on the basis of:(1) non-financial factors for SMEs than financial factors to better reflect the credit risk of their loans;(2) SME loans credit a risk significant impact from the external environment. And by theoretical analysis, the status quo qualitative descriptive statistics and econometric models Logistic regression quantitative empirical studies confirm these two points hypothesis. And four significant factors affecting the credit risk of loans to SMEs:enterprises quick ratio, ownership, and their locations, and the total asset size. Which enterprise the higher the quick ratio, the more clear property rights, enterprise and their locations, the better the environment for the development, the smaller the risk of loan defaults; while the larger the size of the total assets of the enterprise, the greater the risk of loan defaults.Finally, in response to the findings, the article standing such as banks, government departments and business point of view put forward several suggestions:First, the bank should pay attention to the master and mining SME non-financial information; Second, the government should set up a non-profit professional organization to improve the SME credit information database construction; regulatory authorities should relax the conditions of the establishment of small and medium-sized banks to encourage their use of financial innovation to support SME; adjustment of industrial structure and enhance their own capacity for independent innovation changes in the past rely on the earnings of low-cost manpower mode. In addition, unlike previous studies, the analysis sample was randomly selected, field visits, to complete the first-hand data collected in the form of a questionnaire, SME credit risk factors on the basis of theoretical analysis and empirical research, especially a comparative analysis of empirical SMEs financial factors and non-financial factors, making the final conclusion more convincing.