Research On SME Credic Risk Control Of Bank Of China Jilin Branch

Operation and management of the core issues facing contemporarycommercial bank risk management, Based on the current credit business in China’scommercial banks play an important role in increasing the risk of small andmedium-sized enterprises (SMEs) credit research and analysis to Jilin Branch ofBank of China SME credit business risk control, for example, aims to summarize thecurrent induction and credit risk control methods used by commercial banks in China,contact the operating characteristics of SMEs and credit risk characteristics, toexplore suitable for China’s current economic conditions practicable for commercialbanks credit risk, operational risk management, credit control method has a positivemeaning.With the quick development of china’s economy and gradual completion ofmarket economy, the quantity and quality of SMEs of China have kept improvingand the promoting effect of SMEs for economy and the importance in socialdevelopment have become increasingly obvious. However, during the developmentof SMEs, there are still many restrictive factors. The most typical problem is difficultfinancing. Commercial banks also encounter with increasingly fierce competitionduring the development process. It is not only a development chance and state policyguidance but also a business development opportunity for commercial banks toadjust the credit structure and adapt to the credit demands of multiple SMEs. In thispaper, we take the credit risk control of SMEs of Bank of China as the example andexplore credit risk control theories and methods based on the actual conditions ofChinese commercial banks and the satisfaction of the credit demands of SMEs by combining the characteristics of Chinese SMEs and the features of credit risks. Itaims to offer certain references for other commercial banks when handling the creditrisk control of SMEs by giving suggestions to credit management of SMEs of Bankof China.This paper mainly takes the SME credit risk control of Bank of China as anxample and concludes that SME credit market environment and client demands arecontinuously developing and the financial service market of SMEs is in acontinuously rising stage based on the analysis of the current development situationsof theory and practical of risk management of commercial banks and by combiningthe characteristics of Chinese SMEs like abundant quantity, wide distribution, smallscale, incomplete financial structure, high elimination rate and default, lack ofstandardization of financial management, and excessive influence of owner on theoperation management of the enterprise. According to the actuality of SME creditrisk control of Bank of China,this paper analyzes the highlights and specificconntermeasures in SME credit granting management and stresses the execution offocal management and system completion in the front,middle and backstage ofbusiness. Furthermore, trend analysis and strategy optimization have been carriedout by relying on multidimensional data statistics and analysis presentationdecision-making support facing front and back ends to continuously and dynamicallyprevent and control the risks, thus realizing risk and return balancing and supportingthe development of SMEs as well as creating values for banks. Meanwhile, the paperhas proposed a general design idea for SME credit products of Bank of China andrisk control attentions of SME credit risks of Bank of China through the analysis onthe key points of SME credit risks. Also, it has put forward countermeasures toimprove the SME credit risks of Bank of China. For example,carry out screeningprocessing of enterprise data, adopt modern credit risk assessment system andtechniques, adopt slow release management, and strengthen the management of low-quality and specifically highlighted clients. The paper has specifically pointedout the trend and importance of implementing SME credit product innovative riskvalue management. Besides, since commercial banks have comparative advantagefor cash flow management over the clients,they may propose credit schemes that areacceptable for both clients and banks and can realize mutual benefit and win-winsituation for the two parties by selecting these management advantages from theperspective of risk control through the crossing verification and management of cashflow horizontally and vertically and the combination of settlement model andfinancial data, thus not only quickly satisfying the urgent financing demands ofenterprises in business demand but also obtaining business development ofcommercial banks under relatively low risks.They are also main innovative points of this paper as to deeply discuss how tosolve the problem of difficult financing of SMEs of Bank of China and solve thegeneral problems of SMEs through reasonable risk control method and managementmode and product innovation ideas. Avoid rigidly adhering to formality for the creditgranting of SMEs, since the market keeps changing. SME risk management modelsuitable for the demands of SMEs and business development demands of banks havebeen proposed based on the views and ideas of this paper.