Research On Credit Risk Management Of Small And Micro Businesses Of Jiangsu Yancheng A Rural Commercial Bank

By the end of 2017,China had about 28 million small and medium-sized enterprises and 62 million individual businesses.Small and medium-sized enterprises accounted for more than 90 percent of the total market,making them the most dynamic and promising group in China’s current economic development.Small and micro enterprises have become the main customer group of rural commercial banks because of the large number of subjects.Because the non-performing loan rate of the credit business of small and micro enterprises in Jiangsu Yancheng A Rural Commercial Bank(Hereinafter referred to as A bank)is relatively high.As a local financial institution,the risk control level of small and micro enterprise credit business of rural commercial banks is not as good as that of general commercial banks.At the same time,The A bank’s own credit risk control ability is poor,resulting in low risk resistance,poor quality of credit assets,and increasing credit risk.Therefore,it is very important to analyze the reasons for the formation of the credit business of the A Bank’s small and micro enterprises,and to carry out the strategy analysis and optimization of the risk prevention of small and micro enterprises’ credit business.This paper first discusses the related concepts and basic theories of commercial banks’ small and micro enterprise credit business,mainly introduces the concept and type of credit risk of commercial banks,the meaning and basic theory of credit risk management of commercial banks,and the definition and characteristics of credit business of small and micro enterprises in commercial banks.Secondly,it analyzes the credit risk management system of small and micro enterprises in the A bank.First,it introduces the basic situation of the A bank.and secondly,summarizes the credit business of small and micro enterprises in the A bank.The risk performance form and credit innovation practices are analyzed in detail.The third is to summarize the credit management process and credit risk management and control mechanism of the A bank Finally,through the small and micro enterprise credit case analysis the problems and reasons in the credit risk management of small and micro enterprises in the A bank are analyzed.Through the specific small and micro enterprise credit business case,the paper analyzes the pre-lending,lending and post-lending processes,summarizes the problems existing in the credit risk management of small and micro enterprises in the A bank,and analyzes the causes of the problems.This article draws the following conclusion and suggestions: The A bank has exposed the lack of perfect rules and regulations,lack of simple credit procedures,lack of scientific credit rating methods,lack of strict post-loan management and lack of high quality in the risk management process of small and micro enterprises.On the basis of the problems and reasons summarized above,the paper proposes countermeasures and suggestions for optimizing the credit risk management of small and micro enterprises in the A bank.The A bank can strengthen the construction of banking rules and regulations,optimize the credit business process of small and micro enterprises,optimize the credit evaluation system of small and micro enterprises,strengthen the post-loan management execution and improve the post talents in the credit risk management of small and micro enterprises,to achieve the goal of controlling the credit risk of small and micro enterprises and realize the steady operation of the A bank.