Henan Branch Of G Bank Case Research On SME Financing Risk Controls

Small and Medium Enterprises (SMEs) as an important part of China’s market economy system, has made important contributions in promoting the development of the national economy to absorb labor and employment, promoting the development of new products and the expansion of exports. But in recent years, as the global economic weakness in the global economy crisis broken out in2008, as well as the effectiveness of China’s four trillion monetary stimulus gradually weaken and the "four trillion" brought lasting overcapacity is expected to invest over a range of issues after funding constraints, low profits or even losses have been plagued the SMEs groups. In this lengthy economic downturn, many SMEs have closed down because of funding strand breaks, bank loans difficult to return, causing the bank’s new "bad loan boom" appears again. The transition from the current environment of large "structural adjustments", the macroeconomic will last long period of "low-speed" growth. The real economy has been in a "line of life and death" struggling wandering situation will continue for some considerable time. Because of their small sizes, not high-tech, low value-added products such as their own "congenital" conditions, weak anti-risk ability, SMEs are affected more severely. From the current situation, the rapid outbreaks of the banks’ new "bad loan boom" are mainly in SMEs groups. Thus, in the vagaries of the current economic and financial environment, the improvements of SME financing risk prevention and control strategies by commercial banks have great significance.SME financing risk control issues by Henan Branch of G Bank are studied in this thesis. The risk characteristics of SME financing and excessive financing risks are analyzed firstly in the thesis. And then the situation of Henan Branch of G Bank SME financing risk control management system is introduced. Thirdly, a personally involved concrete case of failure in financing is introduced and analyzed, from which some shortcomings can be learned and some feasible and realistic improvements can be done by Henan Branch of G Bank in setting a sound credit risk control mechanism, the rational allocation of guarantee conditions, to establish risk control as the core of the corporate culture and other aspects of proposals. We hope that these proposals can be modeled into preliminary strategies to improve branch prediction, prevention and control of SME financing ability risks. Research on Commercial Bank SME financing risk control is complex system engineering. We sketched out some principles only from the theoretical ideas. In the course of a specific implementation, but also requires constant improvement and innovation in accordance with the actual situation, in order to make the problem solved satisfactorily.