Study On Credit Risk Control Of China’s Commercial Bank To Small And Micro Enterprises

With the rapid development of the economy, small and micro enterprise hasbecome an important force in China’s national economy. However, from the currentpoint of view, the majority of small and micro enterprises, who access to capital arenot an easy task. In recent years, the state has continued to increase attention andsupport to small and micro enterprises, it is imperative to promote the rapid growth ofsmall and micro enterprises with bank loans. But for banks，Effective loan managementand risk control is essentially effective management of asset quality and reasonableconfiguration problems of a commercial bank．The quality of credit assets, not onlydirectly determine the survival and development of banks as well as the financialindustry, and has an important impact on the overall economic development and socialstability. How to improve the credit efficiency, effective control of the credit risk ofsmall and micro enterprises has become an important issue to be solved by thecommercial banks in China．Small micro-enterprise credit scale shows the rapid and stable developmentmomentum in China’s commercial bank. The warranty form of loan balance has anincrease. China’s commercial banks risk control systems and monitoring mechanismdesigned for small and micro enterprises play a more active role. But China’scommercial banks credit risk control system for small and micro enterprises still existdelayed construction of credit risk assessment, a single type of loan, non-standardloans censorship, unreasonable restraint and incentive mechanisms and other issues.These problems are mainly caused by information asymmetry, the higher cost ofmicro-loans, absent bank credit risk control thought, lack of internal control of smalland micro enterprises. I put forward innovation and optimization ideas. For example,a clear small micro-enterprise customer market and clear credit risk control andtradability principle, full control of the credit risk of small and micro enterprises,different type of credit risk, the use of various means of risk prevention, strict controlof small micro-enterprise credit business process. Then I pose scientific and feasiblecountermeasures from management ideas, loan marketing, loan before the survey,loan review, loan approval to post-loan management aspects. I deeply study the creditrisk of small and micro enterprises of one of China’s commercial bank. It not onlyprovides guidance for China’s bank of the development of small micro-loans but alsofor other commercial banks.