Research On Credit Risk Management Of Small And Medium - Sized Enterprises In

Nowadays, the financial system has become the core of the national economy,and the mainstay of the financial system-Commercial banks also play an importantrole in modern national economy. In2008, the U.S. broke out mortgage crisis, and asa fuse, triggering a global financial crisis, which fully demonstrates thedisadvantages of operation and management of commercial banks. And thiseventually even leads to a worldwide economic recession, and continued for manyyears, which has gone far beyond the scope of individual commercial bank.Credit business, as an important banking business,is the basis of the survivaland development of banks. Bank credit is the most important external source ofdomestic small businesses financing. Right now, direct financing in the marketbecomes mature, and the competition from large banks is more severe for domesticsmall businesses. Improve credit condition of domestic small businesses will becomea new growth point. In many risks faced by banks, the credit risk is the key toensure the safety of commercial bank ’s assets. Risk management is the core issuesfor sustainable development of a commercial bank, and the credit risk is the majorproblem. However, The world economy is still in recovery in2013, the world’smajor developed economies will keep slow growth in a sustained pattern. China’seconomy is experiencing the changes from the policy to to autonomy, and economichas slowed. The living conditions of many domestic small businesses have drawn thecommunity’s attention. Small businesses in our country occupies a larger proportionin economics, which will help expand employment, develop economic, ensure socialstability, and promote domestic demand. In order to ensure sustainabledevelopment of China,we must vigorously support and promote the development ofdomestic small businesses, but financing has been a challenge for domestic smallbusinesses. Undoubtedly, strengthening credit risk management of financing hasbeen a challenge, which not only affects the bank’s operating performance andcompetitiveness, but also relates to the safety of bank assets and even their survival.China’s commercial banks keep high risk status in recent years.Although we dispose of a large number of non-performing assets in a number of ways andchannels, credit risk is still great because the fundamental problem is not beensolved. Credit Risk Management plays an important role in maintaining total creditgrowth, preventing credit risks, and ensuring the security and profitability of asset.Therefore, this article, regarding Baoshang bank as the object, studies credit riskmanagement of Chinese Commercial Banks, which has significance to China’scommercial banks, especially for the small and medium sized banks.