Research On Credit Risk Assessment Of Small And Medium Sized Enterprises In MF Rural Commercial Bank

Small and medium-sized enterprises(SMEs)play an important role in national economic growth.In China,the development of the capital market is still in an immature period,there are few financing channels for SMEs.SMEs often face the financing problems because of their small size and poor performance of cash flows.Commercial banks are an important source of raising capitals in a long time which indicate that we should attach more importance in the role of banks play in solving the problems.MF rural commercial bank is a regional commercial bank which provides service to the "three rural",small and medium enterprises.The loans to small and medium sized enterprises of MF rural commercial bank have been rapidly rising in recent years.However,with the slowdown of the economic growth and structural adjustment of the traditional and excess capacity industries,the rate of non-performing loans has continued to increase,in which small and medium-sized enterprises are the concentrated areas of non-performing loans.Based on this background,This paper firstly reviews the development status of small and medium-sized enterprises and commercial banks,credit risk evaluation method of relevant literature,then choose fuzzy comprehensive evaluation methods to value the credit risk after comparing various methods.After that,the paper summarize the current situation and existing problems of credit risk management of MF rural commercial bank.At last,taking MF rural commercial credit client YX company as an example,a fuzzy comprehensive evaluation model based on AHP is built to evaluate the credit risk of YX company.in order to improve the credit risk identification mechanism of MF rural commercial bank for small and medium-sized enterprises which will reduce the bad assets and ensure the healthy development of the banking business.The main conclusions of this paper are as follows:(1)Built the SMEs credit risk evaluation system which include five first level index: enterprise quality,operation capacity,debt paying ability,profitability and development prospects.And using 15 second level indicators,including qualitative and quantitative index which can be more scientific and accurate reflecting the basic situation and debt repayment ability of SMEs.(2)Using the AHP method to calculating the weight of each index,invited experts and scholars on the various indicators of assignment,the index weight of the final calculation passes the consistency test which indicate the weight calculated by AHP method is reliable.The result shows that the index weight of the solvency and profitability is larger than others.(3)Through the analysis of credit risk of YX company,the result of fuzzy evaluation shows that the credit risk level of the company is in the medium level which means the credit risk of YX company is controllable.