Agricultural Bank Of Pingyin County Branch Of Small And Micro Enterprises Credit Default Study

As we all know,small and micro businesses make a huge contribution to China's GDP,and play a role in providing re-employment,improving people's living standards and maintaining social and public order.The steady development of small and micro enterprises affects the overall social and economic development of our country.However,there are many disadvantages in the management of small and micro enterprises:limited disclosure of external financial information,conservative,single and backward management mode,and lack of legal and mortgageable fixed assets.Due to these shortcomings,small and micro enterprises are not approved in foreign aid financing,which has become a common development problem for small and micro enterprises.Urban commercial Banks account for a large proportion of the total number of all types of Banks in the society,and have regional convenience advantages in helping small and micro enterprises provide development fund loans.The emerging small and micro enterprises have great market value,and commercial Banks have become an important source of foreign aid for the development of small and micro enterprises.In recent years,however,small micro enterprise loan default occurs repeatedly,greatly reduces the outside public credibility and recognition of small micro enterprise,so looking for small micro enterprise is in violation of the credit factors,can effectively reduce the possibility of small micro enterprise in violation of the credit agreement,this on agricultural bank's foreign credit business has a purpose.This paper focuses on the pingyin county agricultural bank status quo,problem analysis and empirical analysis the influence factors of small micro enterprise credit default,combined with the concept and characteristics of small micro enterprise credit default,and the related theory research,mainly uses literature research method to study the status quo of small micro enterprise default scholars both at home and abroad were reviewed,based on the qualitative quantitative analysis about the present situation of pingyin county agriculture bank credit,credit,and then uses empirical analysis to the small micro enterprise scale,industry characteristics,internal rating,fixed number of year of the cooperation,loan term,loan interest rates,enterprise whether guarantee for multiple factors related research.The results show(1)the default rate of small and micro enterprises is inversely proportional to their scale.The larger the scale is,the lower the relative default rate of enterprises will be.(2)industry characteristics of small and micro enterprises:construction,leasing services and real estate industries have a high default rate,while education,property management and other industries have a low credit default rate.(3)the internal rating of small and micro enterprises is negatively correlated with the default rate;(4)there is an inverted u-shaped distribution between the term of cooperation and the default.The shorter or longer the term of cooperation with Banks,the lower the default rate of small and micro enterprises.(5)the length of enterprise loans is negatively correlated with the default rate;(6)there is an inverted u-shaped relationship between the loan amount and the default rate of enterprises.The higher or lower the loan amount,the lower the default rate of enterprises;(7)the loan interest rate is positively correlated with the default rate of small and micro enterprises.(8)if the enterprise provides guarantee,the default rate is relatively low;if it does not provide guarantee,the default rate is relatively high.Finally,based on the results of credit default factors of small and micro enterprises,this paper finds out the main factors that lead to the default of small and micro enterprises,aiming to provide policy Suggestions for the improvement of credit business of small and micro enterprises of agricultural bank of pingyin county.Improve the mechanism of reference guarantee and adjust the structure of existing customers;Improve the pricing mechanism of interest rate to realize risk premium compensation;Strengthen pre-loan investigation,focus on solving the problem of information asymmetry;Establish credit risk early warning system,strict deadline formulation.Through the above Suggestions,hope to be able to further improve the agricultural bank of pingyin small and micro credit business play a certain role.