Research On Credit Risk Contral Of SMEs Group Lending In Bank Of Communications Shanghai Branch

Abstract:Group lending system can effectively realize the exchange of information between members of the group to achieve economies of scale, facilitate and encourage effective oversight purposes, which can solve the financing difficulties of small and medium-sized enterprises for the lack of collateral to a certain extent, and promote the rapid development of small and medium-sized enterprise credit business bank. So the group lending is a win-win model of innovation. But as a credit product, the group lending also exists a variety of risks, especially in recent years, the phenomenon of group collective dragging to escape debts even malicious defrauding loans happens frequently which sounds the alarm to the bank for actual group lending operation. So banks must design the group lending system strictly and pay more attention to risk prevention and avoidance when carrying out group loading business in the process.This paper discussed the risk control problem about the small and medium-sized enterprise group lending in Bank of Communications Shanghai branch. We first reviewed the related theory of risk control about the small and medium-sized enterprise’s group lending, and then introduced the status quo of small and medium-sized enterprises’s group lending business about the Bank of Communications Shanghai branch, and analyses its credit risk. Then, in view of the small and medium-sized enterprises’s risk problems in operation about Bank of Communications Shanghai Branch, we designed a risk control program, and select the group loading in automotive parts manufacturing industry in Shanghai as the example to present the specific implementation process of this program. To innovate the early mode of group lending, This program contains the improvement in the implementation of processes and implement a series of security measures, which can make the bank’s credit risk reduced.This study explored the credit risk control solutions of guaranteed loans to Bank of Communications Shanghai Branch, aiming to providing practical guidance to Bank of Communications Shanghai Branch when facing credit risk of guaranteed loans for SMEs, and providing a useful reference to commercial banks when they carry out the product of guaranteed loans to SMEs as well as the operation of credit loan.