Research On Formation And Management Strategies Of Non-performing Small Enterprise Loans In Postal Saving Bank Of China

Due to the decentralized distribution,complex operating conditions,and unsuitable collateral and guarantor,the small enterprise loans are often regarded as risky loan products.Therefore,on the one hand,there are large amount of loan demand for small enterprises in China.On the other hand,the characteristics of small enterprises’ loans make the difficulty in risk control and easy to be non-performing loans.The Postal Saving Bank of China targets the retail bank as the main business,most are concentrated in the rural,community,small enterprise groups.The small enterprise loan is the key business of the Postal Saving Bank of China.The official name is credit management business.It’s the various types of national and foreign currency credit business that the postal savings banks afford to the small enterprise and the owners of small enterprise,to meet their own production and management fund needs,or to provides guarantee of third party credit.The credit business includes the small enterprise corporate credit business and small enterprise owner’s personal loans business.Since the start of small enterprise loans in 2009,a provincial branch of The Postal Saving Bank of China has made great efforts to expand its business scope with the brunch advantage.Small enterprise loans have become an important income growth point of the Postal Saving Bank of China.However,with the economic downturn and the continuous expansion of business scale,small enterprise non-performing loans have become one of the main factors affecting the quality of credit assets.As one of the most important business,the management of the small enterprise non-performing loans is directly connected to the future of the Postal Saving Bank of China.Taking a province branch of the Postal Saving Bank of China as an example,this paper combines the actual situation and the risk cases,discusses and analysis the reasons of the small enterprise non-performing loans,and makes the suggest plans.First of all,this paper summarizes the harm of the non-performing small enterprise loans to commercial banks and the economy,and draws the urgency and importance of risk prevention of non-performing small enterprise loans.This paper has research on the risk management of non-performing loans of small enterprises on the basis of information asymmetry theory,financial vulnerability hypothesis and principal-agent theory.Taking a province branch of the postal saving bank of china as the example,this paper introduces the current situation of the small enterprise loans,they are the large increase of non-performing loans,the high concentration in industry type,the high risk of ship mortgage is high and the risk management is flawed.Three typical cases are selected for analysis in this paper.They are one non-performing loan of small enterprise corporate credit,two personal business loans.With the case analysis and summary of the induction method,four reasons of small business non-performing loans are present:risk management concepts and development strategy-oriented mismatch,credit management system is not sound,the credit management system is not running well,and the credit staff management system is not sound.Finally,according to the summarized four major causes of the small enterprise non-performing loans,the specific management strategies are presents.They are correcting the risk management awareness and establishing the development strategy follow the new economical state.Also,it’s important to implement the principle of unified credit management,improve the collateral access and management requirements,improve the amount of re-check requirements,reduce the loan term risk.In the following analysis,to improve the investigation methods,to improve the review and approval level and efficiency,to improve post-loan management capacity are also present.At last,this paper put forward the following personnel measures as selection of talent in field,team capacity building,reform of salary management system,and strengthening moral hazard education and control.The research of the small enterprises non-performing loans risk management strategy in this paper can play a certain reference role to the development of small enterprises loans of The Postal Saving Bank of China.It improves the risk management work,improves the risk management level,ensures the healthy and stables development of small enterprises loans.