Study On The Small And Micro Businesses Credit Risk Prevention And Control Of NXDZ Credit Cooperatives

The credit business is the main business of commercial banks,the interest produced thereby is also a major source of profit for commercial banks.Since the foundation of NXDZ credit union as well as after sixty years of continuous development and growth,which has become the most numbers of outlets,the widest range of services and capital and largest local financial institution?The credit business has formed its own unique "small micro-enterprises,serve the three-agriculture" development model.However,due to the small size of small micro-enterprise assets,the defect within the financial system,high risk of business operation,weak ability to undertake external shocks,which thereby leading to the possibility of default occurs in the process of financing as well as the increased credit risk is difficult to be efficiently controlled.Therefore,the credit risk of small and micro enterprises for proper identification,measurement,testing and take effective control of their own means and methods to prevent the capital risk,then the win-win goal could be succeeded for the credit unions to achieve stable operation and maximum support towards local small and micro enterprise development.This dissertation has taken such main research methods as practical investigation,document retrieval,qualitative analysis as well as quantitative analysis,starting from the credit business of small and micro enterprises of NXDZ credit cooperatives,firstly which dissects the financing characteristics of small and micro businesses and the reasons resulting into credit risks and explains the status quo of prevention and control of small and micro businesses credit risks of this cooperatives from four perspectives as the scales of credit business,species of credit business,the newly added loan input condition and the quality of credit asset.And based upon which,it has utilized RAROC to carry out quantitative evaluation towards the sizes of credit risks,thereafter which specifically analyses the existing issues within the credit risks prevention and control of small and micro businesses in accordance with the evaluation results as well as combining with the impact elements of the models,in the end,which concludes from the problems existing in the risks prevention and control:the existing risks prevention and control system of NXDZ credit cooperatives can't be adjusted to the incessant developing credit business scale of small and micro enterprises,thereafter which requires that a set of more reasonable and scientific risks prevention and control system which consists of strengthening the entry and exit of small and micro enterprises clients,optimizing the total flow management of small and micro enterprises credit with the purpose of improving the quality of credit assets,enriching the operation mechanism of small and micro enterprises credit as well as strengthening the audit supervision and accountability,thereafter which intensifies the risks prevention and control of NXDZ itself and the capacity of coping with risks.