Study On The Credit Risk Prevention Of Small And Medium-sized Enterprises Of Rural Commercial Banks In Heyuan

Rural commercial banks are the main financing channels for small and medium-sized enterprises in China's financial system.China's small and medium-sized enterprises(SMEs)have a large number,small scale,low anti-risk ability,wide distribution,and many industries.Many enterprises will experience the process of lending to banks in order to expand production scale.However,SMEs are affected by various factors,the operation is unstable,and the internal operation and credit management of rural commercial banks are weak.Therefore,the emergence of non-performing assets and other disadvantages appear,and some rural commercial banks are burdened with huge debts and economic returns are reduced and business risks have increased significantly.Then there is a bad cycle: the credit risk of rural commercial banks increases –leading to a tightening of credit lines – the amount of loans to small and medium-sized enterprises is reduced and the difficulty of loans is increasing – the operation crisis arises from the lack of funding sources for small and medium-sized enterprises –SMEs cannot return money to banks—Banks cannot receive repayments and generate credit crisis.Therefore,strengthening the credit risk of SMEs in Heyuan Rural Commercial Banks is of great significance to the sustainable development of enterprises and rural commercial banks themselves.This paper takes the credit behavior of small and medium-sized enterprises in rural commercial banks of Heyuan City as a sample.After understanding the relationship between rural commercial banks and small and medium-sized enterprises in Heyuan City and the credit operation mode of rural commercial banks,this paper explores the situation of the credit risk of rural commercial banks in Heyuan City.In contrast,Heyuan SMEs have higher credit demand,but the amount of bad credit are also relatively large.The bad credit incident not only harms the interests of rural commercial banks,but also the financial needs of SMEs cannot be satisfied and not good for conducive to the development of small and medium enterprises.The author uses theoretical research and investigation methods to analyze the credit risk of SMEs in rural commercial banks in Heyuan City,and finds that the rural commercial banks' imperfect loan system and accountability system are imperfect,and the credit products are single.At the same time,the weak nature of SMEs,lack of credit awareness,and low penetration rate of commercial insurance With reasons for the imperfect credit system of Heyuan City,etc.That`s jointly affected the credit risk of small and medium-sized enterprises in rural commercial banks.According to this,some measures are put forward to the prevention of credit risk of small and medium-sized enterprises in rural commercial banks.