A Study On The Credit Default Rate Of X Bank

While small and medium-sized enterprises(SMEs)possess high growth,they also face high uncertainty,therefore the financing needs of this type of companies,compared with large enterprises,have the characteristics such as small amount,high frequency and urgent demand.Through reading and sorting out the relevant domestic literature,it can be concluded that the reasons for the financing difficulties of SMEs are very complicated,including internal factors of SMEs,in addition to impact of financial system and credit system.Based on the sample data of 1995 SMEs’ loan from X bank,the relevant factors that affect the loan default rate are analyzed in this paper firstly,as a result,the influence of enterprise background information,loan credit scheme and lenders themselves on default rate from single to whole is obtained.Secondly,by reading 236 loan due diligence reports,it can be concluded that the more the important soft information is included in the due diligence report,the higher the quality of due diligence report writing is,thus the significantly lower default rate would be.Considering the two findings,some problems in the credit business process,personnel training and internal control management of a rural commercial bank are put forward in this paper.Based on the conclusion of the research and the author’s practical work experience,the following suggestions are given by the author in light of these problems: perfecting and unifying the credit process from a micro perspective,establishing a standardized scheme for the training of credit staff and improving the supervision and inspection mechanism.The first part of this paper is about the background and significance of this research,as well as the domestic research on the factors affecting credit default.The second part is an overview of the related concepts of SMEs and loan default,including the concepts of SMEs and their development status,and concepts about default,default rate,credit rating.The third and fourth part are the main study about default rate,including the analysis of the influencing factors of the default behavior and the information disclosure situation of the credit investigation report.How to improve the direction of credit business which is conducive to the control of default rate from the micro perspective,how to train credit personnel,along with the problems and optimization suggestions on internal supervision mechanism in conjunction with the case of X bank are put forward in the fifth part.