Research On The Risk Management Of Small-and-Medium-Sized Enterprises' Loan

According to the current economic development in our country,the development of SMEs(small-and-medium-sized enterprises)plays the vital role in the healthy and stable development of China's economy.The problem of loan financing for SMEs is a major issue for the economy.Granting loans to SMEs is both a rare opportunity and a huge risk for commercial banks.Therefore,the risk management of SMEs' loan for commercial banks is an international and domestic topic which needs plenty of research and discussion.The research in this paper is based on individual cases,which is the research of L branch of Agricultural Bank of China.It analyzes the current status and causes of bank loans for SMEs,and proposes solutions to the current situation.First of all,this paper takes the L branch of Agricultural Bank of China(ABC)as an example to analyzes the present situation of the loan risk.It includes two aspects: the development status of the loan risk management of SMEs and the demand for the loan development.Secondly,according to the data collected by the research results,this paper analyzes the factors affecting the loan risk of the L branch of ABC,and constructs the risk evaluation model from four dimensions including macro risk factors,local government risk factors,SMEs risk factors,and bank risk factors.It evaluates the loan risk of SMEs by using the comprehensive evaluation method.According to the calculation.,the risk value and weight coefficient are calculated,and the comprehensive value of the loan risk of the L branch of ABC is calculated,and the comprehensive evaluation of the degree of loan risk is taken as reference,and the basic security of the loan risk degree of the L branch of ABC is obtained.Thirdly,the causes of risk of bank loan for SMEs is divided into four parts including cause before the loan,cause in the loan and cause after the loan,and other cause.This paper analyzes the problems of the loan risk management system of SMEs.Finally,from the aspects of optimizing the loan risk management system of SMEs,it guides the small and medium enterprise customers to improve their management level and the risk control environment.This paper puts forward some suggestions to improve the loan risk management level,so that the loan risk management system of the L branch of ABC ismore standardized and safer.The paper aims at achieving the L branch of ABC loan risk to realize the sustainable and stable development on the basis of a good control of the risk of loan from SMEs.This will keep the market competitiveness of the L branch of ABC,at the same time,it can be used to alleviate financing difficulty of SMEs and to promote local economic development.