Credit Risk Research And Rating Systems Designation Of Commercial Bank Loans To SMEs

Firstly, the relevant literature about reasons for the financing of small and medium enterprises(SMEs) and their solutions were presented inthis paper. Condition on that, commercial banks’ internal rating systems were introduced, and the deficiencies of the existing research were summarized. It is of desperate necessity to design a credit risk rating system for SMEs regarding the information asymmetry problem between SMEs and banks. Based on the introduction of commercial banks’ loan process, credit risk evaluation index system for SMEs was built, and then the commercial banks’ internal rating system was initially designed aimed at a more standardized measure of SME credit risk, thereby reducing the loss of lending to SMEs.