Research On Improving Risk Management Of Small Loan Business Of YZ Bank

In recent years, the small and micro enterprises in Chongqing City develop rapidly,and make a great contribution to the national economy? But,it is still difficult for small micro-enterprises to finance. At the same time, the competition of the banking industry is becoming more and more intense, and many banks are pouring into the small-loan market.Hence the risk management is becoming important. In this paper, the study of YZ bank loan business and analysis of the risk of YZ bank will be present. On the one hand, the researching will make the bank provide better services for small and micro enterprise; on the other hand, it also is good for the bank to control risk.The credit risk is the prevalent risk type, and asymmetric information between banks and enterprises is the root of credit risk.YZ bank is a commercial bank whose main business is small loans, hence, YZ bank adopts manager system to solve the problem of asymmetric information. But, YZ bank is at great risk.On the one hand,it is difficulty for YZ bank to get complete and veracious information that the enterprises have nor normative financial information,lack fixed assets less. On the other hand,manager system are many defects in practice. Based on the material from YZ bank and the enterprise,the analysis of YZ bank loan business and risk management system will be present in this paper,and it will illustrate that management system exists some problems.And then, it will combine with the specific loan cases to analysis further, Finally,measures will be proposed based on the other domestic banks experience.In order to control risk better, YZ bank must improve the operation system which takes manager system as the core, and meanwhile adjust its own business development model and direction. Specifically, YZ bank must train the managers, set up the assistant system of the risk management, distract the risk of the industry, build the cooperation with other institutions, improve the quality of the information collection, and improve the quality of investigation and management in the process of issuing loans.