Evaluation On The Loan Performance For Small And Medium-sized Enterprises Issued By D Bank, Hubei Branch

Loans are often provided by commercial banks to large customers, whose annual sales revenue are more than $ 30 million, in order to reduce credit risk in the past, resulting in a batch of Small and Medium Enterprises(SMEs) into financing difficulties. According to statistics, the value of final goods and services produced by SMEs was equivalent of 60 percent of gross domestic product(GDP), and SMEs completed more than 80% of new product research and development in 2013. Currently, because of increasing homogeneity of financial products and services, competitions for customers are serious among commercial banks. In addition, SMEs have access to innovation of internet finance, leading fiercer competition among loans for SMEs provided by commercial banks.Since D bank carried out SMEs' loans business in 2003, creative loan origination makes itself sustain low cost in the cooperation with local governments and microfinance companies, promoting economic development in Hubei province. This thesis consists of five dimensions in the balanced scorecard(BSC) put forward by Kaplan and Norton, including finances, customers, internal processes, learning and growths and social responsibilities, highlighting fulfillment of social responsibilities so as to comprehensively evaluate SMEs' loans performances of D bank. The result illustrates the overall performances are relatively satisfied. But the concern is the financial dimension and customer dimension. Thus, at the macro level, the SMEs' credit risk identification and measurement system is prompt to be constructed by governments as soon as possible; at the micro level, it is highly recommended to adopt innovative bank creation of optimal user experience and increase lending rates of fixed loans, keeping those unchanged of liquidity loans. Finally, by adopting the above reasonable proposals, D bank achieve differentiation and long-term profits on the SMEs' loan business.