SME Credit Risk Management Of Rural Commercial Banks In China-a Case Study Of DY Rural Commercial Banks

Along with the economic development of China,the small and medium-sized enterprises(SMEs)has gradually become the main driving force in China's economic growth,and play an important role in stabilizing growth,promoting innovation,prospering markets and satisfying the people,s demand.The support from financial sector is necessary for maintain the SMEs,rapid growth.In order to keep the stable growth,SMEs rely on not only their own primitive accumulations,but also the financial support from commercial banks.In recently years,our country adopts a lot of policies to solve the financial dilemma of SMEs.However,due to the impact of asymmetric information for SMEs,weak anti-risk capability,risk management system is not perfect and other factors,SME s credit risk gradually revealed,the NPL ratio has been rising,and then commercial banks are reluctant to provide more credit support to SMEs.Under this background,it is very essential to analysis the SMEs credit risk management problem deeply,and which is beneficial for promoting the healthy development of rural commercial banks and SMEs.Firstly,the paper introduces the research background,significance,research method,research results,the possible innovation and the main content of this paper.Then this paper introduces the status quo of small and medium-sized enterprise credit risk management of DY rural commercial bank.In this section,we first describe the basic profiles of DY rural commercial bank from the perspective from development history,scale of operation,employee structure,business category,and then introduce the process of credit risk management.On the basis analysis of example,we find the following problems still exist in credit risk management:1.The customers were not deliberately chosen,and pre-loan investigations were not deep enough.2.The post-loan management was not well carried out.3.The credit risk management organization is unreasonable.4.Risk management information system is not perfect.5.Loan process design lacks diversity.Finally,based on the above example analysis and combined with the credit risk theories,this paper put forward some solutions to the credit risk management of DY rural commercial bank from perspectives of establishing scientific credit risk early warning mechanism,formation of credit operation culture,perfecting pre-loan investigation and post-loan management,Optimizing the system of examination and accountability,etc.Combined literature analysis,case analysis and quantitative analysis together,this paper analysis the credit risk management of DY rural commercial bank,and obtain some meaningful conclusions.The innovation of this paper lies in the research of domestic and foreign scholars,mostly from the perspective of state-owned banks and national commercial banks to study the method of credit risk management of small and medium-sized enterprises,while the rural commercial banks such local financial institutions are less.