The Credit Risk Management On Small Business Research Of A Branch Bank

In our country, the possibility that small enterprises obtain funds is more and more difficult, with regards to the present stituation, our government issues a number of laws and decrees which are aimed at forming policy guidance that can encourage finance institutions to give more credit support to small enterprises. For adapting to enterprise development, finance institutions implement internal structure optimization, enhance their competitiveness, and reduce risk factors in the credit process.However, problems that small enterprises are confronted with in bank credit are evident for lots of reasons, such as restrictions from traditional industries and national policies. Therefore, how to control risks effectively is the top priority for bank credit.Starting with risk management of state-owned commercial bank A,this article analyse its small enterprises credit operations by means of SWOT analysis, game theory and so on. The research indicates that pre-loan survey is formalistic and short of non-financial informations about borrowers from fieldwork. Small enterprises who get loan are difficult to be supervised, but bank A can’t pay enough attention to uncertaint factors.Because of these uncertaint factors and the irrationality in traditional industrial structure, this article focuses on the improvement of credit rules for existing borrowers and mechanism of credit evaluation about small enterprises, then promotes borrowers to perform all monitoring requirements to obtain fund aid. Bank A must evaluate properly credit risks from small enterprises and improve constantly their management level. Meanwhile, bank A should also strengthen professional training and R&D of risk management. In addition, bank A should build tridimensional system for small enterprises financial management, enhance the system’support function of risk management, and take measures to prevent from risks as soon as possible.