Study On Optimization The Risk Management System Of Credit Business For Small Enterprise In Fenglong Bank Suzhou Branch

In recent years,with the sustained growth and progress of the domestic economy,many small enterprises have been able to flourish,and their impact on promoting the domestic economy has continued to be strengthened.However,further selfdevelopment of many small enterprises are restricted by multiple factors,especially the financing challenges,which is impeding the pace of small enterprises towards a better development.There are direct and indirect ways of financing for small enterprises,while most small enterprises in China are not qualified for direct financing in the capital market.Bank loan is offering an effective way to solve their financing problems.However,because of the instability of company operation and financial information’s lack of transparency,banks need to take relatively high credit risk when providing credit services to small enterprises.For the purpose of reducing risk,banks are considering about reducing the credit line for small enterprises,but this is not the best way to reduce the credit risk from small enterprises.The helpful way is to improve the bank credit risk management,which is expected to provide better support to small enterprise from its root,so as to help small enterprise achieve their own long-term development and progress.Firstly,through in-depth analysis,this paper clarifies that small enterprises in the credit business have urgent,frequent and short demands for credit funds,however,commercial banks hold cautious attitude for their unmatched small business scale,low anti-risk capability and high mortgage risk;secondly,in view of this situation,it applies credit rationing theory and information asymmetry to explore credit risks of bank.For all kinds of credit risks,this paper identifies the model of credit business related to small enterprises and the measures to achieve risk management in Fenglong Bank Suzhou Branch.From the perspective of pre-loan,in-loan,after-loan and system construction,it holds that Fenglong Bank Suzhou Branch has the problems of incomplete pre-loan investigation and credit rating system,imperfect in-loan review mechanism and lack of risk control after-loan.Then,from the above problems,we focus on improving the credit risk management system of Fenglong Bank’s Suzhou Branch concerning the small business sector from three parts: information survey in the pre-loan period,application review in the mid-loan period and control and management in the post-loan period.Finally,in order to better ensure the efficient operation of the improved risk management system,we should create a wind as a whole.In order to optimize the risk management system,we should organize special cultural activities to promote the construction of credit culture,continue to upgrade the credit rating system,improve loan pricing,innovate financial asset management tools,and formulate a "one-line-one-policy" fine management credit risk culture to implement the risk management system.