Small Loan Company Credit Risk Assessment And Early Warning

In the world economy, the survival and development of small loan companies is an important part of the world economy. Small loan companies as a new type of commercial loan organization, has become one of the important measures to solve the problem of financing difficulties. However, in the process of rapid development of small loan companies, credit risk management has drawed a widely public attention, also, it has influences on the stability of the financial market and the continued development of small credit companies. Under this circumstance, it is necessary to study the credit risk management of small loan companies. Under the impact of the global financial crisis in 2008, the small loan company’s credit risk management has become more and more difficult in the sharply deteriorating external business environment. It is more important to strengthen the credit risk-warning management of small loan companies.This paper uses the theory and evaluation method of fuzzy mathematics to analyze the credit risk of small loan company, takes the small loan company as an example to analyze the evidence. Using questionnaire survey to obtain external informations, adopting the experts’ judgment on the evaluation standard at the same time, in order to improve early warning conclusion of objectivity and forward- looking, through an analysis of the results, not only enriches and expands the application field of risk assessment and early warning, but also puts corresponding suggestions based on the analysis results, so as to make it more reasonable to deal with the credit risk.According to the small loan company’s actual situation, from the viewpoint of fuzzy mathematics, the influence factors of small loan company’s credit risk are divided into three levels, namely: first level indicators; the second level indicators and the third level indicators, three level indicators are related to each other.This paper determines weights of indicators at all levels through the questionnaire survey, and gives an empirical analysis.According to the current situation of C hina’s small loan company and dischosing problems in reality, draw lessons from foreign experience, The results are derived based on the early warning model, a series of measures to cope with the credit risk problems are putted forward, through these measures we can improve the company’s internal and external control, so as to promote the sustained and healthy development of C hina’s small loan company.Research carrys out from five levels, first of all, proceeding with theory, this paper reviews the research literature on credit risk management and early warning. Secondly, on the basis of considering the effect factors which influence small loan companys’ internal and external environment, reasonable risk-warning index is selected. Again, this paper designed a reasonable questionnaire according to the selected risk-warning indicators and carried on this questionnaire survey to the small loan company experts. Fourth, taking the small loan company as an example, the empirical test and analysis are given from the perspective of fuzzy mathematics method. Fifth, based on the above theory and results of the warning model, puts forward a series of measures to deal with credit risk. Finally, based on the whole article, this paper analyzes the problems and prospects of the research.The main innovation of this paper is that introduce the theory of fuzzy mathematics risk- warning into the small loan companies, and analysis small loan company’s early warning problems from the perspective of credit risk.