Research On The Credit Risk Management Of SMEs In Agricultural Bank Of China Suzhou Branch

As the role of small and micro enterprises in promoting economic development, solving the employment pressure and improving the national innovation capability is increasingly important, SMEs have become important subjects of the market economy. Although banks are paying more and more attention to small and micro credit business, because of the information asymmetry in SMEs’ management and the credit characteristics of "short, frequent, urgent," banks’ small micro-credit business has many different characteristics with traditional business and the credit risk is much higher, which making the banks rather timidity in front of the risk, and small and micro enterprises’demand for funds can’t be met.On the basis of summarizing theories of asymmetric information, credit rationing and risk management, and combing domestic and foreign researches related, this paper takes the small and micro credit risk management of Suzhou Branch of Agricultural Bank as the object, analyzes the current situation, problem as well as causing of its credit risk management, proposes policy recommendations to improve credit risk management combined with the actual branch’s actual situations and learning from the successful experience of small and micro credit risk management of banks in and abroad.The main conclusions are:(1) the micro-credit risk management of Agricultural Bank Of China Suzhou Branch has problems like the bias between credit management system and characteristics of small and micro enterprise credit, inaccurate positioning, poor product development, unreasonable credit decisions, inadequate risk assessment and control mechanisms and low quality of credit personnel; (2) the main causes leading to these problems are lacking of scientific standards in small micro-enterprise credit rating, compliance and ethics risks faced by business innovation, the poor internal controls and the negative effects generated from the rapid development of credit business; (3) Suzhou Branch should improve the status quo of SME credit risk management from aspects of establishing scientific concepts, improving risk management system, improving the credit rating system, enhancing product and service innovation, and strengthening personnel training and incentives.