The Impact Of Small And Micro Enterprise Loans On The Non-performing Loan Ratio Of ICBC S Branch Under The Inclusive Financial Policy

Inclusive finance is of great significance to China's economic construction and social stability,and has been written into the government work report for six consecutive years.During the second sessions in 2019,Premier Li Keqiang pointed out in the government work report that "The loan balance of small and micro enterprises of large state-owned banks shall be increase by more than 30% by the end of this year.” As a large state-owned commercial bank,ICBC bears the historical mission and responsibility in vigorously developing inclusive finance,proposing that the development of inclusive finance is its political responsibility and it is necessary to strengthen the role of responsibility to develop inclusive finance well,and to achieve the "inclusiveness" of inclusive finance.On the other hand,China's economic environment as a whole is under greater downward pressure,and the default behavior of loans by small and micro enterprises has continued to rise.The objective situation of the increase in the non-performing loan ratio of commercial banks cannot be ignored.Based on this,research on the non-performing loans of small and micro enterprises in ICBC is of practical significance,which will help commercial banks to reduce the non-performing loan ratio of small and micro enterprise with increasing loan balance and the proportion in new loans under the inclusive financial policy,and comprehensively improve its risk management level.This article selects ICBC S branch as research object,firstly introducing the relevant background and the current research status of domestic and overseas,and then elaborating the related concepts and basic theories.It also analyzes the current situation of ICBC S branch's inclusive financial loans for small and micro enterprises,and then the impact of non-performing loan ratios of small and micro enterprises on the characteristics of enterprises and loans is analyzed and hypotheses are proposed.Based on this,nine variables affecting the NPL ratio of small and micro enterprises are selected,and a multivariate regression model is constructed based on the independent variable NPL ratio for empirical analysis.The results of the study indicate that,regardless of the impact of inclusive financial policies,the non-performing loan rate is affected by the characteristics of commercial bank loanssuch as loan guarantee methods,loan interest rates,and loan term.Under the inclusive financial policy,some factors are no longer significant,including the loan amount and the years of cooperation between banks and enterprises.The factors that have a more significant impact on the NPL ratio are: LIR(loan interest rate),GENDER(gender of the person in charge of the enterprise),and G(loan guarantee method).Among them,the loan interest rate(LIR)is affected by the national monetary policy,so the degree of adjustment of commercial banks is relatively low.And the gender of the person in charge of the enterprise(GENDER)has a certain degree of objectivity.Therefore,the optimization of the loan guarantee method and the improvement of the risk compensation mechanism is particularly important for reducing the credit risk of small and micro enterprisesTherefore,in the end,combining the current situation analysis and empirical results,this article provides some suggestions for the development of inclusive financial services for small businesses of commercial banks,mainly focusing on the prevention of credit risk for small and micro enterprises.The S branch is the pilot scheme chosen by ICBC to implement the inclusive financial strategy and as a reference basis for the comprehensive implementation of the policy throughout the bank.So the research results and relevant recommendations of this article have certain practical and promotional significance.