Research On Credit Risk And Prevention Of Small And Medium - Sized Enterprises In Jinguhe Agricultural Bank

Deposit, loan industry as the main business of the bank, plays an important role in the bank’s business activities. While the banks in the loan business for borrowers face a great credit risk, because of many factors,such as information asymmetry, the borrower cannot repay the loan principal and interest on time.,Therefore, credit risk accounts for a large part of bank risk, and credit risk management is particularly important.Rural credit cooperatives occupy a very large proportion in China’s rural financial market, rural credit funds is the primary way to support the "three rurals", and vigorously promote the development of rural financial market. Most of the rural credit cooperatives customers are composed by self-employed clients and small micro enterprises, this group has a low internal management level, and affected by the external environment. It may be unable to repay the loan because of its income instability. Inaddition, the large amount of non-performing loans has not yet been settled during the reform of the management system of credit cooperatives, so the rural credit cooperatives are in bad position compared with other commercial banks,especially in terms of credit risk. Hohhot Jingu agricultural firms and rural credit cooperatives is formed from the merger restructuring, there are some historical problems left,like non-performing loan ratio etc. They increase the credit risk, are not conducive to the overall operation of the bank. Therefore, this paper describes the Hohhot Jingu agricultural firms risk management present situation, highlights the four major risks, the risk of mortgage business, joint loan business risk, operational risk and other risks. Then aiming at these four aspects of risk, analysis of the causes of credit risk in the specific case and the data include:information asymmetry, weak post loan management, loan guarantee way is difficult to implement, joint loan business access mechanism is not perfect, credit archives management, management decision-making and the local small and medium enterprises for their own reasons. Finally, according to the above analysis, give some substantive suggestions:including the improvement of credit risk management of the overall thinking and goal, a sound credit risk management system, strengthen the credit risk management system construction, construction of Hierarchical Authorization credit risk management system, strengthen the loan approval process of risk management, establish and improve the credit risk early warning system and strengthen the credit risk control culture system construction. To improve the credit risk management of small and medium-sized enterprises based on the reference of these recommendations, has practical significance to Hohhot Jingu agricultural firm’s operation and the local small and medium-sized business progress.