Research On Improvement Of Credit Risk Control For Small Enterprises Loans Of China Citic Bank Dongguan Branch

Since the reform and opening up, the Small enterprises in China has experienced considerable development. They have played an increasingly important role in boosting the economic development, creating employment opportunities, promoting technology development, creating social wealth and so on. Therefore the development of small enterprises has raised more concern nowadays. Over the years, the commercial banks in China has continuously explored the innovational way for providing credit service to small enterprises in China. However, due to such reasons as information asymmetry, increasing cost of service, restraint of credit policy, pressure of capital asset quality, the development of credit services for small enterprises has been restricted.In Dongguan, which is a city in Guangdong province, the private company economy is booming. 90% of the local registered enterprises are private enterprises and privately or individually-owned business, the industrial structure is mainly formed by manufacturer, wholesaler and retailer and hotel service. Dongguan Branch which located in Pearl River Delta is a branch directly managed by the head office of China Citic Bank and is the frontier of reform. The general company deposit of Dongguan Branch has outperformed those of the Big 4 state-owned commercial banks. Dongguan Branch has great influence in the local financial industry. Dongguan Branch is also the experimental unit and pacemaker of credit service for small enterprises in China Citic Bank.This article took the credit risk management for the service to small enterprises in Dongguan Branch of China Citic Bank as an example, analyzed and discussed the risk management method for the credit services for small enterprises. Based on the detailed description of the credit risk management process of service to small enterprises in Dongguan Branch and the present situation of the service provided, this article has evaluated the general situation of the credit risk management system in Dongguan Branch. This article thoroughly analyzed the reasons for the present situation: they lack of prospectiveness when formulating the credit policy, adjustment of credit risk management process is not timely in the period of economic downturn; the panicky call in a loan has intensified the deterioration of the capital asset quality; the early warning system for credit risk has limited effect.This article analyzed the selection process of the credit risk control methods of service for small enterprises in Dongguan Brach, the risk control index setting and deficiency of the business risk control method. As to the deficiency in the risk management, this article offered a proposal for improving the risk management and throw out a detailed suggestion in product innovation, policy making, personal training and performance evaluation.The research purpose of this article is analyzing the credit risk management of credit service for small enterprises in Dongguan Branch, China Citic Bank, investigated the present situation of the credit service for small enterprises, offered an improvement suggestion of the credit risk management, and provided detailed proposal to ascertain the improvement. The research result of this article has reference value for Dongguan Branch in improving the credit risk management of the service for small enterprises.