Research On Commercial Banks To Prevent Small Micro Enterprise Credit Risk

As an important method to prevent credit risk, the enterprise credit management weighs a lot in a bank to manage the credit risk. Small and micro businesses play an essential role in our national economy but always get stuck in “financing difficulty” which lags their development so much. However, making it worse is that the high risks of these businesses make commercial banks turn a blind eye on their loans. At the moment, the influence of such huge bad credit assets on commercial banks’ competitiveness and development forces these banks to strengthen the management of credit risk in small and micro businesses, improve the quality of credit assets and reduce the rate of bad ones.This thesis focuses on Yueqing Rural Commercial Bank’s credit risk management to small and micro businesses from the following three aspects: identification,assessment and control of risk. Based on the data of 96 businesses which asked for loans from 2010 to 2014, the author tries to identify the risk factor. Armed with Logistic Model, this paper can assess the credit risk of small and micro businesses and then set up a model suitable for these businesses to identify and assess the risk thus to provide data for strategy-making. The final part is a study of the strategy about risk management.First of all, the real business data from Yueqing Rural Commercial Bank guarantees the authenticity, feasibility and persuasiveness of the study. Secondly, a combination of data and theory, of the latest data and the real cases, the modification of original models provide a creative way to make the analysis. At last, the author puts forward his views upon attention-worthy aspects in risk control and some new strategies to it.