Research On Credit Risk Management Of Ningxia XB Financing Guarantee Company

In recent years,both the central government and local governments have emphasized supporting the construction of financing guarantee system,making full use of the function of "amplifier" of financing guarantee to help small,medium-sized and micro enterprises solve problems such as lack of effective guarantee,weak and non-standard enterprise strength,narrow financing channels and high financing costs.Especially since the outbreak of COVID-19 in late 2019,the development of small and micro businesses in China is facing severe challenges.The impact of catering,tourism and manufacturing industries is particularly obvious.For the financing Guarantee Corporation,the compensation risk is further increased.For the less developed Ningxia area,the probability of corporate credit risk is higher.In such a complex context,one of the important factors affecting the healthy and high-quality development of financing guarantee companies is whether they can do a good job in credit risk management.Firstly,this paper summarizes the research materials and literature of credit risk management in the financing guarantee industry at home and abroad,then describes and analyzes the relevant concepts of credit risk,the related credit rationing and credit risk transfer theory,and explains its application in the field of financing guarantee credit risk management.Then,taking Ningxia XB financing guarantee company as an example,this paper focuses on the company’s credit risk management concept Management mechanism and management process,find out the problems existing in credit risk management through analysis,compare with the practices of other financing guarantee institutions in the same industry,and finally get the thinking framework of Ningxia XB financing guarantee company in improving credit risk management system.Through the above research,it is found that Ningxia XB financing guarantee company has some problems in credit risk management:weakening risk management culture,lack of credit risk prevention function,failure to set up risk early warning mechanism,failure to establish risk sharing mechanism,lack of risk project classification and assessment mechanism,lack of some functions of risk management organization system,etc.combined with the credit risk management practices and cases of other financing guarantee institutions in the financing guarantee industry,In order to improve the credit risk management mechanism of Ningxia XB company in terms of credit risk prevention and internal risk guarantee,the company should improve the credit risk management system and solve the existing risk management problems in the development of credit risk,Provide sustained support for the development of small,medium-sized and micro agricultural enterprises in Ningxia.