Research On Credit Risk Management Of Bank Of Jilin Based On Fudi Road And Bridge Company Loans

Provided credit support to small and medium-sized enterprises in thenational policy to encourage commercial banks, commercial banks on the onehand provide loans to small and medium-sized enterprises to obtain larger spread, onthe other hand also bear greater business credit risk than other loans. How to analyzeand prevent credit risks from small and medium-sized enterprises becomes a priorityamong priorities of work of commercial banks gradually. Commercial banksshould vigorously develop small and medium-sized enterprise loan business, as wellas fully realize the financing of motivation and methods of enterprise and riskcharacteristics of small and medium-sized enterprises, find a reasonable way topromote small and medium-sized enterprise loan business running and managementfrom operational level, in an effort to improve the rate of return, do pay attention toprevent risks, get a balance between risk and return. At present, domestic small andmedium-sized enterprises show a high degree of dependence on externalenvironment. Their management systems are not perfect, they are lack ofcredit awareness and other characteristics, so that small and medium-sizedenterprises are of great possibility of loan default, so banks are facing more creditrisks. In addition, driven by external competition pressure andinternal profit, commercial banks need to acceleratebusiness transformation. Practices proved that, at present, commercialbanks’ risk management level can not meet the need of small and medium-sizedenterprises’ financing business changes day by day, going ill with the accurate identification and control of risks on the financing of small and medium enterprisebusiness, which seriously restricts development of commercial bank loans to smalland medium-sized enterprises business.In recent20years, along with the developing on national construction of roadand bridge, domestic road and bridge construction enterprises are in the goldenperiod of rapid growth. Road and bridge construction, as the mainstay industry of thecountry industrialization and urbanization, besides the improving position, playingan enormous role on absorbing the surplus rural labor force, has become the keyto social and economic stability. In2013June, an inter-bank "hunger of money" inChina, delivers a strong signal to the market that forces China to transit economictype: it is more difficult to get bank loans, banks are in the process ofcorporatization, they will bankrupt if they do not manage well. Although economymoves smooth overall, influenced by varieties of domestic and foreigncomplicated environment, the pace of economic and investment are growingslowly, the development of construction enterprises are facing a reduced volume ofbusiness, rising labor costs, rising in price of raw material, enterprisesfinancing channel not unimpeded, market not standard and so on. It is urgent to solveissues on how to face current challenges at the same time speed up the pace oftransformation and upgrading of road and bridge construction enterprises, to achievethe sustainable development of road and bridge construction enterprises.This paper takes Fudi Road and Bridge Company applying financingbusiness from Bank of Jilin as an example, according to the enterprise’sown development, identifies and evaluates risks among the pre loanreview, operation and management after lending in the procedure of financing, worksout a suitable financing scheme, and puts forward the risk control for the wholeprocess of financing, provides a theoretical basis for the practice operation as well astheoretical foundation for related research.