Study On Rural Smes Credit Risk Management Of Agricultural Bank K Branch

Along with unceasing deepen reforms and open of our economy, small and medium-sized enterprises (SMEs) have obtained a rapid development, has gradually become the important foundation of the sustainable development of our economy. However, compared to SMEs’ outstanding contribution to our country, the survival of SMEs is becoming more and more difficult; many of them have closed down. Financing constraints problem is an important factor of restricting the development of SMEs. The financing constraint problem of SMEs is mainly reflected in its application to the bank loan, completely can’t get loans or only get part of its loans. To commercial banks, on the one hand, the SMEs are undoubtedly the most widely in the economic development of our country’s economic form, as a important financing platform of SMEs, it is necessary to pay more attention to the financing business of SMEs. On the other hand, due to their poor ability to resist risk,, imperfect financial system, no mortgage assets,there are much risk of the financing business management to commercial bank, commercial Banks have to limit the credit of SMEs, which will result in financing constraint problems. Based on this, It is necessary for the commercial banks to strengthen the credit risk management and control of SMEs, solve financing constraints, promote SMEs’ competition in the fierce market and survive in the long term.Rural SMEs are an important component of SMEs group, which play an immeasurable role in the increase of farmers’ income, the transfer of rural labor force, the construction of new rural areas. However, compared with the city of SMEs, rural SMEs’ financing constraints are more difficult. Rural SMEs credit business is an important credit business of the agricultural bank K branch, as well as an important concept. Therefore, how to further develop the rural SMEs credit business, improve the rural SMEs credit risk management, has a great significance for K branch. In this paper, on the basis of reading a large amount of literature, along with the current situation of rural SMEs credit of K branch and he theories of commercial bank credit risk management, we analyze the rural SMEs credit risk management problems and the causes of agricultural bank K branch in detail, and put forward the advices.Through the detailed analysis of the rural SMEs credit business of agricultural bank K branch, this paper gets the following conclusions:Firstly, the overall development of agricultural bank K branch is well, the rural SMEs credit business is becoming more and more perfect. The rural SMEs credit business is mainly for short-term working capital loans, small、short and fast credit; The loan balance of most customers is under 5 million Yuan; The credit ratings of the customers mainly concentrate above A-class. Secondly, the agricultural bank K branch has formed a relatively perfect rural SMEs credit risk management system presently, Including related risk management approaches, the department which is responsible for SMEs credit business, credit rating standards, differential authorization, comprehensive credit review. Thirdly, there are still some problems in the rural SMEs credit risk management process of agricultural bank K branch,such as credit policy and system, examination and approval mechanism、credit personnel problems, credit guarantee, etc. Through the further analysis, we find that the causes of these problems are the uniqueness of rural SMEs and the management problems of the agricultural bank K branch. Finally, combining with the actual situation of the agricultural bank K branch, this paper puts forward the corresponding advice about risk management, including perfecting the rural SMEs credit risk management mechanism, improving the system of separation and approving, improving the level of credit personnel business, paying more attention to the risk control of guarantee etc.