Research On Credit Risk Control Of Small And Medium-sized Enterprises In ZZ Bank

Small and medium-sized enterprises(SME) is an important part of our national economy, and it has become a vital force to promote the development of society and the construction of harmonious society. The healthy development of the SME has been always plagued by the financing problem of the SME. A good project can not develop well and a good enterprise can not grow up healthily without sufficient funds and smooth financing channels, especially for the SME. If the capital accumulation of a SME is basically rely on themselves, and then this mode is not conducive for SME to resist market risk and to develop persistently. Commercial banks, as the main financing channel for the SME, is replenishing blood for the SME constantly and holding the important mission of supporting the SME. In recent years, commercial banks attach great importance to credit business development of the SME, since the SME has played a more and more important role in the social economy. They explore and improve the products of the SME continuously, and establish and improve the risk control system of credit business for the SME.In this thesis, I firstly introduced the current status of loan business development and asset quality of the ZZ bank, as a typical case and in combination with my own working practices on credit and risk management in the ZZ bank. We found that the proportion of the SME loan in the whole bank loans has increased continually in recent years and the variety of products has expanded unceasingly either. The ZZ bank has achieved a rapid development indeed, but facing the great pressure on risk management. Then, we revealed the risks that the SME credit business of the ZZ bank were facing, from the aspects of the SME and the bank themselves and so on, and analyzed the causes of these risks. Results indicated that the financing of the SME was very difficult, subjected to the nature of the SME themselves and the weak ability to resist risks. Without doubt, lacking of risk management standard system in the ZZ bank, which was suitable for the SME, also played a role. Therefore, city commercial banks, positioning in the service of the SME, not only have to design suitable credit products for the SME, but also to establish and improve the risk control system for the SME. To control the credit risks for the SME in a bank efficiently, and the credit business for the SME will develop well and fast.This thesis analyzed the causes of the credit risk for the SME and put forward that a commercial bank should establish and improve the loan risk control system for the SME. Firstly, we should set reasonable general target of risk loans for the SME broadly and a relatively loose loan risk tolerance. Secondly, a practical credit evaluation model should be established according to the characteristics of the SME and some specialized management institutions and administrative departments should be set up, aiming at detailing the standard of classification for the SME credit business and monitoring the quality of loan assets dynamically. Finally, we should perfect the quick disposal measures for non-performing loans of the SME and form a set of risk system running through the whole business process, including marketing, accreditation, management, assessment, accountability and so on.