Research Of Commercial Bank On The Smes’Credit Risk Management

With over30years of reform and opening-up, the development of small and medium-sized enterprises has achieved glorious accomplishment, becoming a significant part of national economy. Small and medium-sized enterprises cannot develop without capital guarantee. On one hand, funds at the disposal of enterprises are difficult to satisfy all fund demand of enterprises’ development; on the other hand, it is hard for small and medium-sized enterprises to acquire funds by issuing stocks and bunds due to high entrance threshold of direct financing. Therefore, bank credit becomes the uppermost external financing form of small and medium-sized enterprises. However, how does the bank credit meet the credit demand of small and medium-sized enterprises? How does it make sustainable profit while avoiding risks? These are the challenges that commercial bank must face in the process of developing small and medium-sized enterprises’ credit operations.From the standpoint of commercial bank, this paper summarizes the credit risks firstly and introduces how to measure credit risks;Then combined with current situation of small and medium-sized enterprises and management status of commercial banks’ credit risks, this paper comparatively analyzes commercial banks’ existed problems in the management of small and medium-sized enterprises’ credit risks and explores feasible solutions and suggestions. This paper proposes that commercial banks should strengthen self-construction; banks should effectively prevent and control small and medium-sized enterprises’ credit risks by innovating credit products, transforming credit process, cultivating risk management culture, perfecting risk monitoring&early warning system and improving customer quit mechanism.