Research On Risk Control Of Small And Micro Enterprises Loans-Based On Survey Of Postal Savings Bank Of China Suqian Branch

Loan risk management is one of the most challenging issues faced by China’s commercial banks. From the macroeconomic point of view, the quality of credit assets directly affects the stability of the macroeconomic, especially with eight consecutive quarters of the amount of non-performing loans of commercial banks increases since 2014, bad loan problems caused great attention of people in all walks of life. From the perspective of development of commercial banks, direct financing of the capital market and the development of Internet finance makes the competition among commercial banks become more and more fierce, and commercial banks are striving to build their own core competitiveness. In addition, with the development of the economy and the growing number of customers, financial demand is also more and more diversified,. Innovation in financial products enhanced the difficulty of loan risk management. Thus, how to strengthen the management of loan risk is not only critical to the sustainable and healthy development of the national economy, but also important to the development of commercial banks. Establishment of long-term mechanism of scientific and effective loan risk management becomes an urgent issue.Financial support for the small and micro enterprises is an important part of the implementation of Inclusive Finance national strategy. Due to the existence of asymmetric information, the risk management of small and micro enterprises loans have being a difficult problem for both commercial banks and small and micro enterprises. Due to the risk characteristics of small and micro enterprises, using the loan risk management method designed for large and medium-sized enterprise will lead to the majority of small and micro enterprises being unfairly treated, and unable to obtain much-needed loan support. Also, commercial banks cannot achieve the goal of using profits to cover risks, and they cannot carry out the national small micro enterprise financial support policies from the heart, unable to achieve a successful transition.Small and micro enterprises are relatively small, have very short histories, are not information-transparent, do not have standardized financial management system, and are unable to provide effective financial data for credit personnel to carry out the assessment. In terms of financing needs, the amount of each loan is small, with high frequency and urgent time requirement, placing a challenge for the produce design of small and micro and the loan approval process. In terms of risk characteristics, small and micro enterprises are generally sensitive to the risk of the industry. Their ability to resist market risk is weak, and this often leads to systemic risk.There have been a lot of research in the loan risk management of domestic commercial banks, such as Liangqi (2002) constructed in our country commercial bank loan risk system, using a combination method of risk identification, quantification and performance evaluation; and Li Yong (2004) used logistic model to estimate the default probability. But these studies are aimed at the enterprise of medium scale and above, there’s a lack for the research of loan risk control of small and micro enterprises.In the small and micro enterprise credit business, the postal savings bank of China has incomparable advantages. Compared with other financial institutions, China postal savings bank has the most extensive network coverage with more than 40000 business outlets in the 75% distribution at and below the county area, providing access to the largest small and micro customer base. Although the postal savings bank attaches great importance to small and micro enterprises since its inception, and makes many efforts towards product innovation, organizational innovation and innovation of guarantee, such as the transformation of traditional real estate mortgage loans to other collaterals. However, the loan evaluation system for small and micro enterprises haven’t been properly set, risk warning mechanism is not effective, and there’s inadequate post-loan supervision and unscientific credit performance appraisal.Therefore, loan risk control of small and micro businesses should become the focus of attention in the management of the postal savings bank. Combining the results of domestic and foreign theoretical research with the experience gained from practices of postal savings bank Suqian branch, this thesis will focus on the obstacles of the small micro enterprise loan risk management, and provide solution from all aspects including risk control environment, small and micro credit rating system, loan risk information system and supervision system.