Research On The Causes Of Bad Micro-credit Based On The A Urban Commercial Bank

With the deepening of the socialist market economy,the government encourage micro-lending,and our financial institutions,especially urban commercial Banks,have more and more financial services such as loans to small and micro enterprises.However,small and micro loans are more risky and less controllable because of their inherent characteristics,which leads to the increase of non-performing loans.Therefore,it is of great significance to study the causes of small and micro loans for the development of credit assets of urban commercial Banks.Small and micro loans refer to small business loans made by financial institutions to small and micro enterprises,individual industrial and commercial households and farmers.On the one hand,their capital is not enough,and there is no fixed assets that may be mortgaged,on the other hand,they have not employed professional accountant for accounting.Small and micro business owners have no professional study and financial skills.They cannot record the financial situation completely,and cannot provide professional financial statements and credit records to financial institutions such as Banks.That's why small businesses and individual businesses are poor risk tolerance,and the business bank has a lot of difficulty with controlling it.This paper takes the A urban commercial bank bad micro-credit as an example,to explore the reasons for the formation of bad micro-credit.It aims to provide a new direction for financial institutions to think about the causes of non-performing loans,and help the city merchants to avoid the risk of bad micro-credit.