| The researches on banks’ non-performing loans have significant meanings. Because it not only relates to the profitability, healthy development and core competences of individual bank, but also links to the local political and financial situations tightly. That is to say, banks’ non-performing loans have great influences on financial stability and crisis, which can be detrimental potentially. The prevention and resolution of non-performing loans are priorities among all tasks of commercial banks. In practice, commercial banks in China should deal with the stocks of non-performing loans constantly on the one hand. On the other hand, it is more important to prevent and control the new non-performing loans effectively.In recent years, domestic commercial banks respond to the calls of government actively, participate in resolving the difficulties of small businesses’ financing, adjust the credit structure, and carry out a series of micro loan businesses. Theoretically, the risk management of small businesses’ loans should comply with the law of large numbers. According to the unifying of credit granting, the limitation of individual account, and the template of three-check, the banks’ operating and management of small businesses’ loans could be small, disperse, batching and standardized. However, in practice, because the small businesses have difficulties of lending money from banks for a long time, there is scarcely any credit records of small businesses in the banks’ system. The average sum, usual term, rational pricing and late return of small businesses’ loans lack of sufficient data to provide related information. Thus, when banks start to enter the fields of micro loan business, they are not able to provide an exact risk score card objectively. During the examination and approval of individual loan, we find that the differences between areas all over the country are too large to use a template to standardize. The limitation of an individual account is 5,000,000, while in Beijing, Shanghai and Guangzhou, the maximum number can be 10,000,000, which should not be included in micro loans. What’s more, the constitution of the recognition functions, which aim at identifying the borrowers’ family tree and various relationships, has not been realized from the respective of systematic technology. The risks caused by loan concentration are too high to be decentralized actually. Therefore, the basis, which the law of large numbers depends on, does not exist.The following content gives an example of HH bank. We analyzed the current situations, traits and typical cases of the HH bank’s non-performing loans. Combined with the existing theoretical research results, the findings indicate that the commercial banks currently have shortages and deviations of the micro loans’ risk management, especially in areas such as the instructive ideology, organizational framework, rules and regulations, and personnel quality. We analyzed the profound reasons of the appearance of micro non-performing loans. And based on the results of the analysis, we point out that banks should apply the scientific and comprehensive risk management theories to instruct their work, manage risk actively, and constitute scientific principles and cultures of risk management. Besides, by applying the advanced risk management technologies, the banks should structure the mechanism of dispersing and transferring the risk of micro loans, complete the risk management mechanism, optimize the risk management process, enhance the education for personnel’s professional ethics and capability, build and complete the mechanism of risk monitoring, guarantee the effective execution of policies and systems. These management strategies, which are exceedingly targeted and practical, should be explored deeply. |
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