A Study On The Credit Risk Assessment System Of Commercial Bank Loans To SME

Small and medium-sized enterprises have played a significant role in activating economy,safeguard social stability,promote technological innovation,etc.SMES are an important componentof a country’s economy. But their development were limited by the financing difficulties. And themain channel of enterprises in our nation to obtain funds is through bank loans, but banks arereluctant to provide loans to SMEs because asymmetric information between commercial banksand SMEs led to great credit risk for SMEs and high costs in management of loans. SME businessis the next major profit growth of commercial banks, and credit risk is the main risk faced bycommercial banks, how to control loan’s risk is a major problem faced by commercial banks inpractice. The best way to solve the problem is to set up a series of credit risk assessment systemwhich can effective control credit risk and only for SMEs.This paper first pointed out the importance of the commercial bank’s stability to the nationalfinancial system and SMEs play a decisive role in our national economy,elaborate definition ofSME and credit risk,analyze the features of funding needs of SMEs and credit risk characteristics.Then reviewing the theory of credit risk assessment,describing the method commonly used incredit risk assessment now and pointing out the advantages and disadvantages of each method.Onthe basis of existing SME credit risk assessment on the theory,constructing of SME riskassessment system based on the characteristics of funding needs and credit risk of SMEs. Nextelaborate the principle of logistic regression model,build analysis model.Using the SPSS softwareto study the SMEs credit risk assessment system by analysis the annual report of non-listedcompanies and companies in second-board market.Finally, basic on the conclusions of theempirical analysis, suggestions for improvement of the existing SME credit risk assessment.In the study, first of all,this paper depends on the actual situation of SMEs to ensure theauthenticity to achieve more convincing and interoperability. Secondly, it specifically study theassessment system for SMEs of characteristics and application of fund characteristics, rather thansimply based on credit risk assessment system of large enterprises. In addition, this paperintroduces the growth rate of electricity and tax rate.Otherwise, providing my view in establish a risk assessment system.This paper concludes that the financial situation of the cash debt ratio has a certain degree ofimpact on credit risk of SMEs, the level of sales growth has a significant influence on credit risk.Electricity growth rate and the growth rate of tax have a significant influence on the credit risk ofSMEs.