Research On Credit Risk Management Of Small And Micro Enterprises In H County Branch Of Agricultural Bank Of China From The Perspective Of Inclusive Finance

More and more national policies have been put in place in recent years to shape a positive environment for commercial banks to engage in inclusive finance and support small and micro businesses.With the continuous spread of the concept of inclusive finance,many universal issues,including unstandardized management systems and weak anti-risk capabilities,have been increasingly prominent among small and micro businesses,along with more and more credit risks.As the county-level sub-branch of Agricultural Bank of China,H county sub-branch has been equipped with regional advantages in terms of inclusive finance customer resources.However,the profitability of small and micro businesses engaging in inclusive finance have been influenced by their economic capitals and non-performing loan devalue provisions,with very limited loan interest rate increases and intermediate business incomes,hence further increasing the credit cost and corporate adverse selections.Consequently,H county sub-branch confronts weak credit expansions and difficult risks controls for small and micro businesses.In 2018,the tightened review of commercial bank inclusive finance operations by CBRC and People's Bank of China has complicated the efforts of banks to cover risks with earnings.Therefore,it is imperative to improve the credit risk control of small and micro businesses,and facilitate commercial banks' services that support their development.With regard to the latest policy background,this article is based on the perspective of county-level sub-branch to adopt literature analysis,questionnaire survey,and analysis of typical cases.By referring to the operating risks of internal control system and the credit risks of industry fundamentals,it probes into the external and internal credit risks problems and causes faced by small and micro businesses engaging in inclusive finance.Meanwhile,probes into the drawbacks of commercial banks in inclusive finance service concept,credit decision-making mechanism and internal management system,along with the policy suggestions aimed at optimizing the inclusive finance credit risk management of small and micro businesses in four aspects,namely,service innovation,system building,big data application,and legal risk prevention and control.