Research On The Risk Management Of Micro-credit Loan Business Of Internet Banking

In recent years,with the popularity of the Internet and the development of financial technology,a number of Internet banks have emerged in China.Based on online business,they widely provided differentiated inclusive financial services to ordinary people and small and micro enterprises.However,these banks have successively violated laws and regulations,which revealed that the Internet banks have serious risk management issues.Based on information asymmetry theory,big data risk control theory and COSO risk management theory,this paper adopts case study method to carry out risk management of micro-credit loan business of Internet banking.In this paper,taking Webank as an example,this paper analyzes the risk management problems and causes of the company's micro credit business,and then proposes optimization measures and designs a new risk management framework,which includes target layer,execution layer and guarantee layer.First of all,in the target layer,the author designs a target system and set the goals of risk management.Secondly,in the execution level,the author carries out the risk management process and analyzes that We Bank mainly have five kinds of risk,including credit risk,market risk,operational risk,liquidity risk,legal and policy risk.Then author uses the AHP and FCE to evaluate risks and provides solutions to reduce and control risks.Finally,in the security layer,the author optimizes the risk management guarantee system.In this part,in terms of corporate governance and culture,the author puts forward some suggestions like stopping major shareholders' intervention in operation,preventing insider control and building the corporate cultural.And after that,the author also suggests using the “two-line report” mechanism for information communication and reporting.In regard to the supervision system,“three lines of defense and one line of decision defense” supervision structure are designed for Webank.Through the application of the above-mentioned three levels,this article hopes to successfully control the risk of micro-credit loan business of We Bank,and also propose some practical advice for other Internet banks and banking regulators.