Research On The Pre-loan Risk Evaluation Of Small And Micro Businesses In CZ Branch,GS Bank

For commercial banks which provide risk businesses,risk is like a double-edged sword: on the one hand,it can bring profits to the bank,but in the meantime,it is also associated with certain risks.The bank is facing different types of risks during their day-to-day operations,and credit risk is the most common risk,so how to control the credit risk according to the law of large numbers is the key whether the bank can provide steady operation.As the main force of Chinese economy,small and micro businesses have gradually become the important customer group in the banking industry.With the implementation of the national policy of targeted cuts to required reserve ratios in 2018,commercial banks will provide more and more favorite policies for small and micro businesses,and the granting scale will also be significantly improved.Current pre-loan risk evaluation model of bank does not have sufficient effectiveness,and most data collection work is handled by the customer manager who needs to conduct field due diligence and data collection.This approach has low efficiency,which is very difficult to satisfy the policy requirement to grant massive loans.As the first link of corporate access,the risk and quality control of pre-loan risk investigation determines the substantial risk results of a loan.Therefore,it has critical significance to the development of bank by studying how the commercial bank can improve current pre-loan risk evaluation model and increase its pre-loan risk identification ability of small and micro businesses.In this paper,based on related researches on current definition standardfor small and micro businesses,credit risk type and pre-loan risk evaluation model for small and micro businesses,we propose an improvement program for current pre-loan risk evaluation model of GS bank.First of all,we conduct in-depth research on the risks corresponding to different evaluation levels,and introduce the main logic and evaluation methods of the pre-loan risk evaluation model for small and micro businesses of GS bank.Secondly,by combining the customer manager's experience-based judgment and actual cases of four small and micro businesses which the CZ Branch provided service to,and modifying some contents and rating weights in the index system,we optimized and improved current pre-loan risk evaluation model.Finally,the customer manager conducted filed due diligence of the operation of four companies one year after granting the loan,and it proves that the evaluation result obtained by using the new index system for small and micro businesses is more consistent with the actual situation.At the end of article,we summarize the main problems solved in this paper,and propose optimization suggestion to further improve the pre-loan risk evaluation model.