Case Study On Credit Risk Management Of Small And Medium Enterprises In Rural Cooperative Bank

Rural Cooperative Bank is evolved by the rural credit cooperatives, which is based on service "three rural" service small micro-enterprises, supporting economic and financial development of the rural county where the market positioning. Compared to other commercial banks, which has a small, rural county in the main market, the main customers are the particularity of small and micro enterprises.Small and micro enterprises is an important part of our national economy, the market economy is the most active cells. However, small and micro enterprises are often less capital, small-scale, governance structure is irrational, high credit risk, so small micro-enterprise financing is difficult to break long-standing problem. The main force of rural financial institutions to support small and micro enterprise development, however, according to 2013 statistics China Banking Regulatory Commission, the NPL ratio of rural financial institutions compared to other commercial banks have been at the highest level, which is rural financial institutions are not lending customer structure unrelated. Although higher credit risk of small and micro enterprises, but Min sheng Bank, Merchants Bank has achieved good results in the small and micro credit business, which shows lack of technical and internal controls exist on rural financial institutions in the small and micro-enterprise credit risk management. If rural financial institutions in the expansion of small-scale micro-credit risk control at the same time be able to do a small micro-credit, then not only the rural financial institutions to achieve a breakthrough in small and micro credit business, and small and micro enterprises financing problem can be obtained resolved.A rural cooperative bank belonging to rural financial institutions, which is currently restructuring the agricultural firm. Appeared in the restructuring process a large amount of non-performing loans (mostly small and micro enterprises nonperforming loans), to improve the level of credit risk management has become without its problems. Systemic risk is relatively small and micro-enterprise credit outstanding, it can not be avoided and change banks only to improve their risk management, good internal credit business in order to better control the reduction of non-systemic risk of small and micro-enterprise credit. Therefore, this paper A rural cooperative banks as a case, based on the five elements of internal control theory from the status quo of their internal control small micro-enterprise credit risk management, the existence of the problem and the reasons were analyzed. On this basis, this article gives some recommendations to improve A bank’s risk management system. This paper is divided into five parts:The first part introduces the research background, significance, research methods, research results and the main content of this paper; the second part describes the risk characteristics of the definition of small and micro enterprises, small and micro-enterprise credit, the internal control theory and meaning The main contents of the internal control of the bank; the third part of the status quo A row of small micro-enterprise credit risk management analysis. This section first describes the basic profiles A rural cooperative banks, small and micro enterprises credit status quo, and then based on the internal control theory, starting from the five elements, A-line analysis of the internal environment of small and micro-enterprise credit risk management, risk assessment system, risk control measures, information and communication, as well as internal oversight measures the status quo; the fourth part in the third section of the line on the basis of analysis of small micro-enterprise credit risk management, the problems and the reasons for the formation of these issues; the fifth part in the draw made several policy recommendations on the A line of small and micro enterprises to improve credit risk management. First, create a good internal control environment, the second is to establish a sound system of small and micro enterprise credit rating, the third is to improve risk control measures, four is to strengthen information systems, five internal supervision and inspection to ensure effective play.