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Commercial Banks To Small And Medium-sized Enterprise Credit Risk Management Research

Posted on:2016-02-22Degree:MasterType:Thesis
Country:ChinaCandidate:Y FangFull Text:PDF
GTID:2309330479996927Subject:Business administration
Abstract/Summary:PDF Full Text Request
After China joined in the WTO and with the development of the international financial markets, especially after US broke out the subprime crisis in 2008, the West society has the economy crisis taken place, the quality of commercial loan business in Chinese commercial banks became worse and worse and the proportion of non-performing assets was increasing. China has excess production capacity in the industry of steel, photovoltaic industry and so on, the credit risk in commercial banks has become more obvious since 2012, and the real exposure of credit risk is in a further increasing trend. Commercial banks are experiencing the difficulties in the rise of non-performing assets and the decrease of capital adequacy ratio, banks’ ability of resistance against risks became weaken. As the banks have been interested in pursuing efficiency and control force of credit risk management, the selectivity of commercial loan business in respect of SMEs which have asymmetric information is widening, the monetary capital has flew to the state-owned enterprises and large enterprises.As a matter of fact, SMEs’ corporate governance mechanism are not perfect, their management systems are relatively weak as they usually run family business and focus on personal leadership which lead to their capitals and financial system are not clearly clarified and credit status are not always good. Considering the above, the banks have always been cautious about SMEs’ business, the credit policy and regulation in respect of SMEs are not favorable to SMEs. At present, China is at the economic downturn, SMEs are facing the dual pressures of enterprises’ survival and development. They need strong financial support during this period; But the procedure of approving commercial loan of SMEs is strict, time-consuming and the approved credit is relatively low. It is difficult to meet the financing needs of SMEs. So what factors affect the financing of SMEs in commercial banks? How to get this problem resolved? This paper is going to do research of SMEs credit risk management in commercial banks in the following three aspects:(1) To fully evaluate the current situation of SMEs commercial credit risk management through investigation;(2) To analyze the SME Business Credit Risk Management Problems;(3) To propose solutions and recommendations to improve SMEs credit risk management in commercial banks.The purpose and significance of this paper is to find out the situation of SMEs credit risk management in commercial banks.The first chapter is the introduction; mainly introduce the research background, purpose of the study, research methods, content and technology roadmap, innovation points. Also it will do research and literature review in respect of credit risk management and SMEs financing both in China and abroad.The second chapter is related to the concepts and theoretical study. It will go through the SMEs credit risk management information asymmetry theory, loan rationing theory, transaction cost theory to analyze the actual credit situation of SMEs, and the characteristics of the commercial banks in aspect of the SME credit risk management, types of credit, trends of financing, in addition it also reviews the SMEs’ corporate credit risk management theory.The third chapter is for the survey of the interviews about the risk management of SMEs in Zhoushan; furthermore, it will research and analyze the current status of SMEs’ credit risk management and financing management in the commercial banks.The fourth chapter will analyze SME commercial credit risk management problems and research from the angle of the decision level of the commercial banks, the management aspect of SME business, the communication between commercial banks and SMEs to conduct a detailed study and analysis.The fifth chapter will propose the solution and suggestion to improve the SME commercial credit risk management. This paper is going to provide recommendation of credit control measures evaluating through the construction of commercial bank credit organizations, SME credit evaluation system, guarantee system, credit monitoring of SMEs; improvement of credit contact design in commercial bank and development of a variety of credit techniques.The sixth chapter summarizes the full paper.
Keywords/Search Tags:SMEs, risk management, commercial credit, Zhoushan, credit rating
PDF Full Text Request
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