Research On Risk Control Of China Commercial Bank About SME Credit Business

With the national policy’s encouraging and supporting, more SMEs (Small and Medium Enterprises) grow up. SMEs have played a significant role on the total number of enterprises, the contribution to GDP, and the contribution to solving the urban and rural area employment. However, the problem of financing SMEs is always placed in front of a state and society problems to be solved. SME financing difficulty is caused by two important aspects, one is the narrow channel of financing, the threshold for SMEs raising funds rely on direct financing is higher, particularly in China where the capital markets and bond markets still relatively immature. Thus, SMEs mainly depend on indirect financing to raise capital, which is to rely on bank loans. On the other hand is a credit risk, both to obtain funds through bank loans, compared to large enterprises, because of smaller scale, SMEs have weak anti-risk capability, meanwhile the SME’s credit rating mechanism at the national stage is not perfect, so commercial banks choose large enterprises more emphasis. In response to this situation, commercial banks need to improve their ability to control risk in the SME credit business management in response to the national policy on the settlement of the financing difficulties of SMEs, support the healthy development of SMEs, while improving the competitiveness of the banks themselves. So in this paper, how to effectively control credit risk for SMEs were studied.For financial master’s learning characteristics, combined with the specific content of social practice, this paper selects the credit risk of default occurred in A city commercial bank in China to study. During the internship in A city commercial bank, based on the research of bank credit business management and the visit to the bank account manager, first-hand information of A city commercial bank in the credit business management is acquired. Based on these data, this paper first introduced the background of the related subjects and events that occur throughout the process in detail, and then use the theory of risk management of commercial banks to find credit risk control business problems exist in A city commercial banks. Further conduct division level for the risk factors of SME credit business of commercial banks according to the relevant theories and methods of structural model analytical method, and to determine the interaction between them, finally puts forward commercial banks how to effectively prevent risks and control risks in reality. Eventually put forward in reality, commercial banks should pay attention to the face of the SME credit investigation and review, strict the loan operator to operate in compliance, strengthen loan management work and to improve employees’ comprehensive quality, in order to achieve the purpose of effective risk prevention and control.