Study On Credit Risk Prevention Of Small And Micro Businesses

The lending business has always been one of the main businesses of financial institutions,the interest produced is the main source of profit for financial institutions.Since the foundation of H credit cooperatives as well as after thirty years of constant efforts for development,which has become the most numbers of outlets,the widest range of services and biggest fame local financial institution.With the development of the county economy,the small and micro enterprises gradually increased,and the demand for financing increased gradually.However,due to the small size of small micro-enterprise assets,imperfect financial system,high risk of business management,weak ability to undertake external shocks,which 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 should be identified and take effective control.Take effective methods to prevent the loading risk,to achieve stable operation and maximum support towards local small and micro enterprise development.Then the win-win goal could be succeeded for both small and micro enterprise and the credit cooperatives.This article has taken many research methods such as comparison,reference and analysis,practical investigation,document retrieval,starting from the lending business process of small and micro enterprises of H credit cooperatives,firstly analyzed the characteristics of small micro enterprise and their risk factors,and described the status quo of prevention and control of small and micro businesses credit risks of H credit cooperatives.The existing problems in the prevention and control of credit risk in small and micro enterprises are analyzed in detail:the existing risks prevention and control system of H credit cooperatives can't be adjusted to the incessant developing credit business scale of small and micro enterprises.Finally,the countermeasures of risk prevention are put forward: from the credit business process,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 improved the ability to prevent and control risks of H credit cooperatives and the capacity of coping with risks.