The Study On Credit Risk Control Of Microcredit Company In China

Microcredit company,since its establishment in October2005,developes rapidly,by the end of June 2011,there have 3366 microcredit companies,287.5 billion loans,89.4 billion new loans in the first half of.As an innovative means of financing,microcredit companies playing an irreplaceable role in improvement of the current financial environment.By its financial services,not only compensate for the weakness of rural finance,make up for the lack of large commercial bank credit ’support for SME,but also open the door for the plenty of domestic private capital into the formal financial sector.Currently,microcredit companies are in good condition,the loan is in short supply.But as a new thing,microcredit company is still in the exploratory stage,because of.the different points in its establishment and operation,there is a series of risks hiding in microcredit companies.That these risks can be controlled or not will have effect to the sustainable development of microcredit companies,even to Chinese order of financial market.In these risks,credit risk is more prominent;therefore,the control of credit risk is particularly important.In view of this,this paper based on research methods of analytical induction,analytic hierarchy process and a combination of qualitative and quantitative analysis,elaborate the content,characteristics and operation mechanism of China’s microcredit companies,analyze the financial risks they faced during the Business,focused analyze credit risk and its causes.Based on the introduction of successful foreign micro-credit model,summarize risk prevention mechanism that suitable for our microcredit companies.Finally,Analyze our microcredit company’s status and the problem on risk control,Because China’s microcredit company did not access the credit system,In order to avoid credit risks better and improve the operational efficiency of the microcredit loans,we should to intensify customer credit investigation,reduce the credit risk resulting from asymmetric information,therefore,on the review of microcredit applicants,this paper puts forward with a microcredit credit risk control mode by means of the combination of expert method and credit rating method.Credit scoring method is a perspective from quantitative credit risk assessment method,which is widely used in developed countries of the credit loan and credit card and have many similarities with China’s microcredit system,therefore it has a great significance and feasibility,but China’s microcredit has its own characteristics,such as China’s credit mechanism is not consummate,highly mobile population,unstable income and so on.Therefore this paper is committed to establishing a credit scoring method for Small enterprises,given the microcredit companies’s main customers are small business owners,in the index screening,according to the lender is a small business owner,the establishment of index system is used to match the index,the index weight determined steps,using analytic hierarchy process.The value of this paper lies in the situation that it could not establish a comprehensive credit system for the migrant workers,small business owners and other low-income people in short term,found a combination of qualitative and quantitative method of credit repayment of the loan applicants to predict their loan repayment situation,then changed the past ’s solely on qualitative analysis for approving loans,risk control deficiency,attained to reduce the microcredit company’s credit risk.