A Bank Small Business Loan Risk Control Case Study

In recent years, China’s economic and social environment have developed sustainly and rapidly, small enterprises have played a decisive role in China’s national economic development, and they also have gotten a lot of pubilicity. Due to the small enterprises run in a limited curcle, small asset dimensions, weak anti-risk ability, difficult guarantee mortgages, imperfect financial system, opaque enterprise information, the financial services of the small business have been a major bottleneck to restrict its development, in case of the cost control and risk,the financial institutions feared to create the market vigorously. Under this background, the small business funding problems have become the focus of all walks of life.A bank has established a small-business loan risk control mechanism, which is of great significance, through the case analysis,they find the root of loan risk from the source, through changing the risk control model in the bank, it solved the contrdiction between the banks and the small business. What’s more,it solved the the asymmetry of information between the small enterprises and the banks, and it is a fundamental solution to the difficulty of risk control for the small enterprises, which played a promoting role in the development of China’s commercial banks and small enterprises. To establish a suitabe standard and lower the access threshold for the small business, meanwhile,it provided a risk-prevention standard for the small enterprises.Study whether the loan risk evaluation index of the state-owned banks and the joint-stock banks can reflect the risks of small business loans procedures and conditions accurately, analyse and research a set of complete risk-control system, thereby it can improve to identify loan risk of the small enterprise. Through the study of the corporate credit risk rating system, it found the weaknesses of the index analysis method, which helped the small enterprise loan risk prevention and control to a new level, and form a new evaluation criterion and mechanism.This paper is divided into four parts. First of all, the introduction part elaborates the research background, significance and content; the second part introduces the loan case of the A bank; the third part introduces the theory, and analyze the causes of the A bank loans risk; the fourth part put forward the solutions the loan risk.This paper put the small enterprise loan risk prevention as the center,aiming at the small business loan risk prevention, using the case analysis and the combination of theory and practice research method, through the process of deep analysis of the loan risk prevention and control problems in A commercial bank, it grasped the small business loan risk prevention and control law.