Studies On Credit Risk Control System For Small And Micro Businesses By Our Commercial Banks

Small and micro businesses play an irreplaceable role in the expansion of emp loyment, economic growth and encouraging innovatio n, but the financing of small and micro businesses has been a major problem in China’s econo my. As our country strengthens credit support to these enterprises, commercial banks are also fully aware of its potential value and start the small and micro businesses credit service as one of the channels for stable business growth. However, co mpared with the large and med ium-sized enterprises, the living space of small and micro business is narrow. Banks lend to small and micro businesses to obtain larger spread, but also bear the greater credit risk than other loan b usiness."High credit risk" has become a hand icap of small and micro businesses loans develop ment. How to analyze and control the credit risk of small and micro businesses loans become the key to sustainable development for commercial bank small and micro businesses credit business.This paper in the perspective of commercial banks conducts a comprehensive induction of credit risk control techno logy and system to build a good theoretical platform. Then fro m the practice of China’s commercial banks lend ing to small and micro businesses, the part analyzes detailedly the status quo o f banks’ credit risk contro l from the technical level of credit limit, guarantee, loan pricing, and the institutional level o f process control, professio nal institutio nal management, retail credit model. Compared with the current situation o f foreign commercial bank small business credit risk control, the part summarizes the management problems of China’s commercial banks: lack of professional credit techno logy, imperfect credit guarantee system, the practice result of small business credit franchisee is not significant and so on. In order to reveal the financial factors and non-financial factors of small and micro enterprise credit default risk, emp irical part constructs the index system of the real data and uses Probit model to analysis emp irically credit default situatio n of small and micro businesses in a co mmercial bank branch in Hunan province, conclud ing that qualitative variab les such as relevant enterprises and entrepreneurs informatio n which has stronger explanatory power for small and micro businesses default than quantitative variab les. In the foregoing analysis, comb ined with the support of natio nal po licy and the characteristics of small and micro businesses credit risk, the part discusses the significance of aspects to small and micro enterprise loans credit risk control which are the development of information technolo gy, financing guarantee system improvement, product inno vation and small business franchise organizations to optimize, propose banks’ improvements in these areas. The biggest characteristic o f this article is analyzing comprehensively small and micro businesses credit risk control fro m the aspects of technolo gy and institutio n, and the cred it risk measurement technolo gy applies to small and micro enterprise credit risk which tries to analyze risk factors of loan default.