Study On The Development Of The Small Enterprise Loan Business Of Hunan Branch, Postal Saving Bank Of China

In the year of2011，CBRC（China Banking Regulatory Commission）issued a "toHelp the Commercial Banks with Further Improvements on Financial Services forSmall Enterprises". The main purpose of this notice is to push the banks to focus onsmall enterprise loan. Also in this year, Head office of PSBC (Postal Savings Bank ofChina) redefined small enterprise loan with details and spread it to all branches ofPSBC. Hunan Branch, as a representative of PSBC, spared no efforts to do its best onsmall enterprise loan business and contributed to the local economy of Hunan. Thispaper use small enterprise loan business of PSBC, Hunan Branch as an example andexpounded this business in all aspects.After introducing the basic status of small enterprise loans in Hunan Province,this paper elaborated the development of the small enterprise loan business of HunanBranch, PSBC. According to the analysis of the data collected in the small enterpriseloan center and current situation, three prominent issues was drew, including the riskof the progress, low efficiency caused by improper organization and insufficient riskcontrol. Due to the latecomer disadvantage and the lack of innovations, the smallenterprise loan business of Hunan Branch, PSBC is relatively outdated. Thecharacteristic of small enterprises and region, combined with the strategy of theHeadquarter, resulting in the high concentration of the loan. Besides, theinappropriate design of functions and organization structure, the lack of teamworkand low level of specialization, leads to the low efficiency of small enterprise loan.Moreover, the existence of loopholes of risk control is related to informationasymmetry, subjective factors as well as the lack of a solid internal control system.Faced with these problems, we proposed a corresponding improvement program,mainly in three aspects. First, to improve the existing loan procedure, we have to setup a “Lending Factory” method based on strategic business unit system in order toreplace the centralization situation of PSBC. Second, crate a B2B electronic financeplatform of small enterprise clients of PSBC, then combine it with the B2C platformof Happy Go to provide handy financial services to customers. Thirdly, improvementsof risk control system were made in customer segmentation, market positioning, staffinternal control and mechanism perfection.In the last chapter, the paper proposed several supplement advises corresponding to the improvements we discussed in the former chapter. To make organization reformsmoothly, building a professional “Lending Factory” workforce would be necessary.Vigorously develop internet banking and E-finance so that the electronic financialservice platform we proposed would work at its best. In addition, promote theawareness of risk of the staff and improve the self risk monitoring mechanism andinternal management system of branches in order to consummate the risk controlsystem. It is hoped that taking these measures could promise a healthy and rapiddevelopment of small enterprise loan business of Hunan Branch, PSBC.