Analysis Of The Causes And Countermeasures Of Non-performing Loans Of SMEs In SD Branch Of Bank Of China

With the continuous prosperity of our country's economy,people's living standards have been continuously improved,and the business scope of commercial banks has been continuously expanded,bringing new opportunities to the development of commercial banks,as well as challenges such as management concepts and operating systems.Objectively speaking,after the implementation of the joint-stock system reform in China,commercial banks have made risk management,internal control,balanced earnings and risk the key management,and have achieved good results in marketization.However,because of its excessive pursuit of profits and performance evaluation guidance,it is also faced with many difficulties such as incomplete credit system,irregular process management and lack of professional talents.At present,China strongly advocates supporting the development of SMEs(small and medium-sized enterprises)and requires commercial banks to assume social responsibility.From the perspective of commercial banks,the SME business is also a new blue sea for banks to expand their business scale.SMEs have small scale of production and operation,incomplete financial system and system,and poor overall risk resistance ability.They are easy to become the risk points arising from non-performing loans.Therefore,how to manage the credit risk of small and medium-sized enterprises has become an urgent problem for commercial banks.The large area of non-performing loans in the SME credit business of the Bank of China SD Branch began to appear in 2014,indicating that the bank has some shortcomings in credit risk management,which has greatly hindered the bank's continued development of SME business.This paper studies the problems existing in the credit risk management of small and medium-sized enterprises,analyzes the key link of credit granting management of SMEs,and puts forward the strategy of improving credit risk control of SMEs.In this paper,we think that the Bank of China SD branch has obvious non-performing loan problems in its operation,most of which are non-performing loans of SMEs.In addition,besides the macroeconomic environmental factors,the internal risk control mechanism of the bank is not comprehensive enough.In view of the problems of Bank of China SD branch in handling the loans of SMEs,this paper points out that it is necessary for Bank of China SD branch to strengthen the pre-loan investigation work,and to standardize the examination and approval system of loan,so as to improve the post-loan risk response measures.At the same time,the necessary risk rating system needs to be established to further improve the existing credit system.