ABC Bank Wenzhou Branch Small And Micro Enterprise Credit Risk Management Research

Small and micro businesses is a new driving force in the development of national economy,and plays an extremely important role in aspects like stabilizing growth,expanding employment,promoting innovation,prospering markets and satisfying people's needs.In order to keep a rapid trend of growth,small and micro businesses should rely on not only their own primitive accumulations,but also the support of external financing,especially the bank loans which are the main source of capital.The Party Central Committee and the State Council attach great importance to the financial services for small and micro businesses,put emphasis on the importance and urgency of such services,and have put forward concrete and specific requirements.Currently,since more risks are involved in running small and micro businesses,it is harder and costs more for banks to manage credit risks.As a result,banks are not willing or are hesitant and afraid to lend money to small and micro businesses,leading to the difficulty and high cost for the latter to obtain loans.Such phenomenon has grown rather common these days.This paper takes ABC Bank Wenzhou Branch as an example,and obtains the case information through questionnaires and interviews.analyzes its current condition and measures of conducting credit operations and managing credit risks.On the basis of case information,we find out the following problems still existed in credit risk management: 1.No credit operation culture had been established,so the guiding ideology was deviated;2.The credit operation teams were not well-equipped,so the management capacity was not adapted to;3.The customers were not deliberately chosen,and pre-loan investigations were not deep enough;4.Post-loan management was not well carried out,and credit-exit mechanism was not strictly implemented,etc.Finally,Based on the current conditions and combined with credit risk theories,the current study puts forward solutions to the credit operations of ABC Bank Wenzhou Branch from the perspective of formation of credit operation culture,pre-loan investigation,inter-loan assessment and approval and post-loan management,etc.