Research On Credit Risk Management Of Small And Medium Sized Enterprises In Commercial Banks

Since the financial crisis in 2008, the small and medium-sized enterprises in China develop not very well, and the financing difficulty which had troubled the small and medium-sized enterprises many years appears again. In order to promote the sustained and healthy development of small and medium-sized enterprises, the relevant state departments have issued several support policies, and the banking also takes the credit business of small and medium-sized enterprises as the important strategic development goal. However, undeniably the credit risk of small and medium-sized enterprises is rising, and the banking is encountering the challenge in traditional risk management. Currently there are the problems like high proportion of bad credit assets and many hidden risks commonly found in the credit business of commercial bank for small and medium-sized enterprises, which severely weakens the competitiveness of commercial bank and endangers the survival and development of commercial bank, causing the highest attention of the society. According to the practical situation, the author finds that currently there are new characteristics with the credit risk of small and medium-sized enterprises, which requires that the banks have to adjust their own thoughts for risk prevention, should not evaluate the credit risk of small and medium-sized enterprises by relying on traditional mechanism and pattern, and should comprehensively examine the problems existed in credit risk management from the aspects of macroscopic environment, characteristics for the customer group of small enterprises, operation process of bank credit management, improve the measures for risk control, set up the credit risk management mechanism with the characteristics of small and medium-sized enterprises.Firstly, this paper introduces the research background, research significance and theoretical achievement related to the subject, and reveals the significance for developing the credit business of small and medium-sized enterprises by analyzing market environment, policy guidance and collecting relevant data. Then this paper, starting from the characteristics of small and medium-sized enterprises, analyzes the characteristics for the credit business of small and medium-sized enterprises like the difficulty in getting loans, high cost, high risk and malignant game with the bank, meanwhile shows that the control of credit risk at bank terminal is very important for the healthy development of small enterprises and the positive cycle development for the relationship between banks and enterprises in the future. As for the control of credit risk, it should first determine the source of risk, this paper collects the current results of theoretical analysis in the industry about credit risk management of small and medium-sized enterprises, drawing the framework for the sources of risk factors, then selects 200 pieces of credit business of small and medium-sized enterprises in M Bank as the sample, concludes seven risk factors affecting the credit risk of small and medium-sized enterprises like industry attribute, loan purpose and guaranty style through data statistic analysis, and then summarizes the list of risk source about credit business of small and medium-sized enterprises, combined with the results of theoretical analysis. As for the list of risk source, this paper adopts the method of expert evaluation, invites the experts with rich experience in the industry to evaluate the probability of occurrence and degree of influence for various risk factors, finally concludes the rating table for the relationship between each risk source with credit risk of small and medium-sized enterprises, showing the results of risk evaluation. Finally, as for the chapter of risk response, according to the theoretical research achievements from the above literature survey and the problems revealed through the above sample statistics about H Bank, this paper explore the countermeasures that the commercial banks should take to reduce the default risk of small and medium-sized enterprises, puts forward the measures to increase the sensitivity of economic cycle fluctuation, improve the accuracy of credit rating, control the operation risk of bank, reduce the credit risk of enterprise, especially points out the authenticity of reviewing enterprise debt-payment indicators in disguised form, the principles to follow for the credit rating of small and medium-sized enterprises different from large-scale enterprises, and the improvement measures of several operations for building the new framework in order to strengthen the team construction of small and medium-sized enterprises.