Research On Credit Risk Management Of Small And Micro Enterprises Of P Bank

Among China’s business, small and micro business accounts for99.9%, but it is difficultto finance from banks in the past. The lending service for small and micro business has a greatpotential, which can be a new way to make a profit. Since2011, P Bank has adjusted itsdevelopmental strategy, expanding small and micro business finance services. However, theimperfect financial management, lack of experience and incomplete risk management systemincrease risks of small and micro business related finance services. How to control risk of itslending service is profound for P Bank strategic transition.Based on the thorough risk management, P Bank establishes three lines of defence. Thelending service is based on industrial clusters,which requires examining and approving smalland micro business customers on a large scale, and meanwhile set up well-run riskmanagement system with post division, credit management and rate, and authorizationmanagement. However, though the lending service is developing rapidly, its credit andmanipulation risks are high due to less normative finance management, unbalancedinformation and bad risk resistance ability.The thesis is framed according to risk management theory, concerning risk features ofsmall and micro business customers, and elicits five problems in lending risk management ofP Bank by researching on its reality. The five problems are as follows: first, risk managementscheme is behind the development of small and micro business services; second, unequalinformation between the bank and its customers is unsettled; third, the withdrawal system oflending service for small and micro business has not established; moreover, risk evaluationsystem is incomplete; last, assessment and accountability system is improving. All of themrestrain the rapid and healthy development of lending services for P Bank’s small and microbusiness. Concerning the five problems, the thesis tries to find out countermeasures andadvice, setting up small and micro business finance department, strengthening allocation of itsstaffs, founding independent post credit management system, and improving others problemsmentioned above.Targeting on risk management of lending services for small and micro business in PBank, the thesis also focuses on how to manage lending risk in other commercial banks, which can be adapted from by other financial institutions. To solve the problem of lendingrisk and financing is profound for deloping China’s economy.