A Research On Credit Risk Management Of Small And Micro Enterprises In Rural Credit Cooperatives

Credit for small and micro-sized enterprises is a critical way for government to support real economy,stabilize employment,encourage innovation and entrepreneurship,which is related to the development of national economy and society.In order to obtain a larger market,higher return on investment(ROI)and a wider number of customers,domestic commercial banks,especially those small and medium-sized banks,are prone to take the credit business of small and micro-sized enterprises as a more important development area.However,under the current downward pressure of macro-economy,the potential risks in financial field keep increasing.Due to the characteristics of small and micro-sized enterprises and the lag in risk management technology of commercial institutions(commercial banks,credit cooperatives,etc.),the non-performing loan rate of small and micro-sized enterprises increases,which accordingly make the credit risk increase.Strengthening credit risk management of small and micro-sized enterprises not only increases the business performance and competitiveness of commercial banks,especially for small and medium-sized banking financial institutions,but also enhance their assets security and survival rate.Hence,the study of credit risk of small and micro-sized enterprises is particularly critical and has very important practical significance.This paper takes credit risk management for small and micro-sized enter:prises of some Rural Credit Cooperatives as the research subject,based on the current research situation of credit risk management of small and micro enterprises at home and abroad,information asymmetry theory,credit rationing theory and commercial banks,which shows that there is information asymmetry between commercial banks and small and micro enterprises.Therefore,when banks are carrying out small and micro enterprise credit business,they are faced with adverse selection and moral hazard.Due to the restriction of credit rationing,commercial banks have a phenomenon of reluctance to lend to small and micro enterprises.This paper discusses the current situation of credit risk management for small and micro-sized enterprises and the risks existing in the whole implementation process,such as imperfect credit risk management system,imperfect risk early warning mechanism,imperfect information system,unreasonable credit risk rating hierarchy,incomplete pre-loan investigation,inadequate post-loan management and weak risk management awareness.At the same time,by referring to the advanced credit risk management ideas and methods applied in small and micro-sized enterprises of famous commercial banks at home and abroad,we provide the corresponding credit risk prevention suggestions,including improving the credit risk management system of small ·and micro-sized enterprises,improving the credit business processes of small and micro-sized enterprises(like pre-loan investigation,credit risk rating and post-loan management of small and micro-sized enterprises),promoting product innovation of micro enterprises and strengthening risk management training.