Study On SME Credit Risk Evaluation Of Commercial Banks

With the constant deepening of China’s economic development and the process of reform and opening up, minor enterprises is becoming more and more important in the modernization. But its development process is still subject to many constraints in which the problem of financing is the most prominent.However, the development of China’s financial system is imperfect, so the vast majority of minor enterprises can only be financed through commercial bank credit. And the uncertainties of the market environment and SME business management level may lead to commercial banks credit risk.Bank credit risk may cause paralysis of the country’s financial system,which will have a significant impact on the national economy.Therefore, it is necessary for the commercial banks to make an effective credit risk evaluation of SMEs.Based on extensive collection of information and a lot of reading,the paper analyzes the research status of SME credit risk at home and abroad.It introduces the criteria for the classification of domestic SMEs and their socio-economic status,the introduction of the definition of risk, risk classification and risk factors.Then it shows SME credit risk definition, characteristics and causes briefly.After elaborating definition and steps of SME credit risk evaluation, it introduces the principles, processes and methods of risk identification.And evaluation indicators used in this article are listed and explained in detail.Meanwhile, several commonly used methods of credit risk evaluation are cited.Through the study of the existing credit evaluation method,this paper establishes grey network credit evaluation model based on the triangular fuzzy number.The use of triangular fuzzy number set expert opinions to be three value.It uses network analysis method to establishthe interaction between the indicators and to calculate the index weight.Finally,it uses the grey comprehensive evaluation method to calculate the credit risk value.Finally, the credit evaluation model is applied to the case analysis to obtain the desired effect and it puts forward several SME credit risk control measures.