Study On The Risk Of Enterprise Joint Liability Loans Prevention Of Suzhou SZ Rural Commercial Bank

In theory, because of the design of joint liability, the joint liability loan has the advantage of information symmetry in before loan, middle loan and after loan, it solves the problem of adverse selection and moral risk effectively, it also reduces the cost of bank’s management, audit and execution. Since the birth of Group Lending, it always was supposed as the important tool of solving difficult financing and expensive financing of the small and medium-sized enterprises, it can help the small and medium-sized enterprises who have the deficiency of qualified collateral to finance. But in practice, the risk of joint liability loan is more than general enterprises loan effectively. In 2014, the crises of joint liability loan was exploded in the small and medium-sized enterprises of jiangsu and zhejiang province, the banks reduced this business of loan. For the small and medium-sized banks who had more joint liability loans, it is important to strengthen the risk management, identify, prevent and resolve the risks effectively and maintain the safety of loan’s fund of this kind of loans. The SZ rural commercial bank of Suzhou was rural credit cooperative until 2014. It’s business of joint liability loan began in 2008 and developed fast, lots of problems were exploded in this years, and produced lots of bad loans. It can be found that there are obvious risks in the customer selection, group established, risk management, loan limit, providing strategy, management after loan and so on in the SZ rural commercial bank of Suzhou. It also exploded some problems in the running of risk management system such as the conflict of strategic goal and risk prevention, the weak sense of risk management, the crushing circuit of risk management, the missing of risk tools and the shortage of customer management.This paper starts from the characteristics of the joint liability loan, analysis the differences of the joint liability loan and general loan’s risk management operation mechanism, the advantages and disadvantages of the joint liability loan and general loan. Then, it uses the risk prevention and management system rules of Basel Accord as analysis tools, uses the performance of the SZ rural commercial bank’ joint liability loan since 2014 as the example, concludes the risks and the reason of this risks, concludes the differences and contradictions of risk exposure and risk prevention and management system of the SZ rural commercial bank. At last, this paper proposes improving suggestions including the base of risk prevention such as strategy, organization system and culture, the process of risk prevention such as risk Identify, evaluate, monitor and control, the strategy of risk prevention such as system, policy and quantitative, the method of risk prevention such as Data, information system, the relationship of the government and regulators.This paper uses the risk prevention of local small corporate bank’s joint liability loan as the breakthrough point, according to risk management method from the Basel Accord, comprehensive arrangement the links and weaknesses of risk prevention of the SZ rural commercial bank’ joint liability loan.This paper have practical significance for guiding the risk management of small and medium-sized Banks.In this paper, the first chapter introduces the research background, significance and status, puts forward the research ideas and methods, as well as the research structure and innovation; The second chapter introduces the content of the research theory, Including the theory of joint liability loan, bank’ risk and the risk’ prevention. The third chapter introduces the development of the SZ rural commercial bank, analyzes the risk prevention measures, and the main performance of the risk. The forth chapter proposes the shorts of SZ rural commercial bank in the base, process, strategies and measures of the risk prevention. The fifth chapter propose five suggestions of the risk prevention. In the last chapter, this paper summarizes all the text, refining the point of view, and for the lack of research, put forward the next step of the research.The innovation of this paper lies in the following two aspects:takes the SZ rural commercial bank’ joint liability loan as the example, makes an empirical analysis, and analyzes comprehensively the characteristics of risk of the SZ rural commercial bank; According to the Basel Accord and the risk management framework of CBRC, analyzes the strategy of risk prevention of the joint liability loan, has a strong theoretical and practical significance.