Study On SME Credit Risk Management Of Bank Of Shangrao Nanchang Branch

With playing a very vital role in our S economy and social development,MEs(Small and Medium-sized Enterprises)enjoyed lots of national policy which can improve its rapid development these years.But financing difficulty still is a general problem which had been influencing its sound development.SMEs expand its business mainly with its own funds,and the major outside financing is band.Unfortunately,with the inefficiency of regulation and finance.SMEs cannot receive enough finance support from bank,which is leading representative of financial service field,then and then endanger the long-term development of SMEs.But as a character of high profit,financial agents offered strong support to SMEs recently.Then its very important to manage the credit risk in the process of development and increasing financial demand.Chinese government increased the support to SMEs these years,and so with the commercial banks.The rapid development of credit business lead the difficulty of credit risk management.We need to make intensive research on this issue,not only supporting the development of SMEs but also controlling risk efficiently.This article takes the example of SMEs' credit risk management of Nanchang Branch,Shangrao Bank,firstly states Chinese commercial banks' credit risk theoretically,then based on the local specialty of Nanchang Branch,make in-depth research on Chinese local commercial banks' credit risk management.Secondly clarifies the problems and reasons during SMEs' credit risk management from local banks,and then provides improvement and support measures against the reasons.To realize the effective control of SMEs' credit risk,the solution is to lower down asymmetry information during 2 major segments of credit business.At last,this paper comes up with the improvement scheme for SMEs' credit risk management of Nanchang Branch,Shangrao Bank,mainly through implementation and assurance conditions.By this way we can carry out the implement of improvement project of credit risk management successfully.Analysis shows that we can only control credit risk with the method of defusing and reducing information asymmetry at the extreme and reasonable risk management mode while supporting SMEs.