The Study On Commercial Bank Loan Risk Management Of Small And Micro Company

There is a huge quantity of small and micro companies in our country and they have been playing a very important role on promoting the development of the social economy. However, most of these enterprises often fall into difficult position to varying degrees because they face finance problems. Due to the situation above, the government and relevant departments released a series of policies and measures to support the development of small and micro enterprise. Therefore, for commercial banks, presenting more credit support to small and micro businesses is not only a micro decision related to bank’ profits, but an important way to fulfill its social responsibility. At the same time, more and more banks choose to adjust their capital structure by developing small and micro credit operations, in order to improve their core competitiveness.This paper uses both the theoretical and practical methods to analyze the current situation of Bank of China’s credit operation of small and micro business. Then find and solve problems on the basis of the results. The main content and structure are as follows:firstly, state the background and significance of the paper, concluding the study achievement of both home and abroad and summarize the content of this paper; in the theory part, giving out a definition of small and micro enterprise which is the subject of the study, and introducing its economic importance. Describe the characters of small and micro enterprise risk management home and abroad and come up with solutions to risk management of commercial banks in China; then comes the case study of Bank of China, including the current situation and the management in each stage of the loan business and giving out a comprehensive evaluation of the bank’s risk management status; finally, put forward a series of targeted countermeasures on the basis of former chapters. The paper argues that, risk management of small and micro businesses is important for commercial bank’s long-term and stable development. But risk management only works when both the commercial bank’s internal management and external cooperation are improved.