Research On Credit Risk Management Of Medium And Small-sized Commercial Banks

At the beginning of the twentieth century,with the rapid development of China's economy,many small and medium-sized enterprises emerged as the times require,creating a large amount of economic income for our country and solving the employment problem.However,with the outbreak of the financial crisis,the market environment is not as active as before,and the operation of small and medium-sized enterprises has also suffered unprecedented shocks.Many enterprises are losing money gradually.The difficulty of normal repayment of loans has resulted in a large number of non-performing loans,and the bank's credit policy for small and medium-sized enterprises has gradually tightened.As a result,Premier Li Keqiang of the State Council said at the second meeting of the 13 th National People's Congress on March 5,2019,"We should vigorously solve the problem of difficult and expensive financing for enterprises",and put emphasis on "increasing the targeted reduction of small and medium-sized banks,releasing all the funds for private and small and micro enterprises loans","This year,the loans of small and micro enterprises of large state-owned commercial banks will increase by more than 30%.At present,the most important and urgent task of commercial banks is to give assistance to the development of small and medium-sized enterprises.Although the government has issued a lot of relevant policies,requiring commercial banks to increase financial support for SMEs,the non-performing loan rate of SMEs has remained high,which has brought difficulties to the implementation of banks.Due to the relevant characteristics of SMEs,their standardization,stability and risk resistance need to be improved.Compared with large enterprises,SMEs are weak in risk resistance and frequent breaches of contract.With the continuous development of the market environment,loan types are rapidly updated,and credit business risk types are constantly updated.Although domestic and foreign commercial banks can no longer blindly follow the traditional risk prevention strategy,relying on the traditional system and model to assess the credit risk of SMEs.Commercial banks must keep pace with the times if they want to get more profit market from the customers who are flourishing in small and medium-sized enterprises.Starting from the reality and combining with the relevant examples of NY Branch of G Bank,this paper sums up a set of credit risk management system for SMEs suitable for commercial banks in China.The author enumerates the relevant theories of enterprise financing at home and abroad,and consults the research results of credit risk,operational risk,market risk and other risk factors management.The existing research results mainly study the causes of SMEs' financing difficulties and the main causes of credit risk and preventive strategies.However,in the economic downturn,how to develop a comprehensive and effective credit risk management system has become the focus of current research.From the point of view of financing difficulties and high non-performing loan rate of SMEs at this stage,the author has read a lot of literature,summarized and analyzed relevant research theories at home and abroad,and expounded new financing methods such as information asymmetry theory,supply chain financing,and listed credit risk,liquidity risk,operational risk and market risk which produce non-performing loans for SMEs.Four main risk factors are analyzed.The identification and precautionary measures of risk factors are analyzed.Three main credit modes and internal credit business process architecture are also analyzed,which lay a theoretical foundation for the following research.By elaborating the analysis and evaluation of credit risk of small and medium-sized enterprises,the author extracts the cases of non-performing loans in A enterprise of NY Branch of G Bank,and expounds the types of enterprises,main business,industry classification,loan fund use,external guarantee and rating results of this enterprise.It shows that NY Branch of G Bank does not perform due diligence before lending and does not monitor loan use.Strict,post-loan management is not in place and other issues.Starting from the whole process of credit business risk prevention and control system,this paper analyses the defects and shortcomings of the existing system,and puts forward corresponding measures to solve the problems.At present,NY Branch of Bank G mainly has operational risks of commercial banks,such as lax pre-loan risk access control,lax loan approval process control,and inadequate post-loan management supervision.This indicates the existing direction of NY Branch in the whole process of credit business to be improved.Subsequently,from the perspective of in-depth investigation,we should pay attention to non-financial indicators,strictly implement the credit system of "double investigation",focus on the market,investigate the quality of the main managers themselves,establish the concept of monitoring credit risk throughout the whole process,improve the supervision and early warning mechanism,strictly investigate the credit responsibility system,strengthen the sense of responsibility,avoid becoming mere formality,grasp the risk control point,and establish the risk early warning mechanism.Some suggestions on standardization of credit archives management and establishment of scientific and reasonable incentive mechanism for credit business are put forward.