Study On Small And Micro Credit Risk Control At China Minsheng Bank Shanghai Branch

Small and micro enterprises as an important part of our national economy, playsa decisive role in promoting innovation, increasing employment,maintaining socialharmony and stability. However, small and micro enterprises financing problem nevergets resolved. High-risk character of small and micro enterprises exposed in recentmacroeconomic downturn accompanied with some industries and regional economicdecline. Many banks have suffered losses. Risk management system of small micro-enterprise loan has become the most important thing in the development of small andmicro credit.In this paper, we begin with small micro-credit risk management theory. Thenwe analyze the major risk characters of small and micro enterprises, based on thecharacteristics of them and the development of CMBC small and micro business. Weanalyze the main characters of small and micro enterprises loans in CMBC Shanghaibranch from perspectives of business circle and industry chain.In order to summarize the problems in small and micro credit risk control systemof China’s commercial banks, in this paper, we take CMBC Shanghai branch as anexample, combining the case of business circle and industry chain exploiting model.We point out problems in three districts: the existence of access, credit rating,after-loan management.Finally, we advise risk control system of small and micro credit risk should beimproved in six ways: to support the implementation of fiscal and financial harmony,the establishment of small micro-credit guarantee system, sophisticated credit riskmanagement, small and micro business organization and process transformationestablish small and micro enterprise credit system, innovative small and microfinancial services.