Research On Loan Risk Management Of Small And Micro Enterprises In Shandong Branch Of Bank A

Small and micro enterprises are an important part of the national economic system,By the end of June 2022,there were 13.068 million small and micro enterprises(including individual industrial and commercial households)in Shandong Province,accounting for more than 94% of all market entities.The COVID-2019 has dealt a fatal blow to the global economy since 2020.The trade war between China and the United States and the Russia-Ukraine conflict have also become obstacles to the rapid and healthy economic development.The development of small and micro enterprises is very difficult due to their small scale,unsound corporate system and weak risk resistance.Shandong Branch of Bank A,a first-class branch under a state-owned bank,has quickly formed a huge loan scale since it started small and micro enterprise loans in 2011,relying on its strong capital strength and low interest rate marketing model.After the Branch’s non-performing suppression in previous years,the trend of asset quality was positive.However,with the outbreak of the epidemic,small and micro enterprises suffered from the impact of their operations,and the deficiencies in the risk management of small and micro enterprise loans of Shandong Branch of Bank A began to emerge.How to find the problems in the risk management of small and micro enterprise loans in the Branch and propose effective improvement measures has become an urgent problem in the current risk management of small and micro enterprise loans in the Branch.In this study,based on the COSO-ERM framework,the current situation of the risk management of micro and small enterprise loans in Shandong Branch of Bank A was analyzed.By using questionnaires,AHP-fuzzy comprehensive evaluation,in-depth interviews,and statistical analysis of risk cases,the problems and their causes in the risk management of micro and small enterprise loans in this branch were identified through the risk identification and evaluation.The problems in the risk management of micro and small enterprise loans in Shandong Branch of Bank A were mainly reflected in five aspects including prominent operational risk problems,the weak emergency handling capacity for unexpected events,deficiencies in risk management process,the untimely adjustment and revision of risk management system,and poor information communication.The causes of these problems included insufficient attention to personnel management,lack of a unified contingency plan for emergencies,lack of a systematic risk management system for the whole process,inadequate dynamic adjustment system for risk management,and inadequate information communication and reporting mechanism.In response to the problems and their causes,the following improvement measures for the risk management of micro and small enterprise were finally proposed,including strengthening the construction of governance and culture modules,enhancing emergency response capabilities of risk management,improving the quality and effectiveness of the operation of the "comprehensive,full-process and full-staff" risk management system,building a digital risk management dynamic adjustment mechanism,and opening up communication channels between front and middle platforms.The innovation of this study is that based on the quantitative evaluation of risk factors of micro and small enterprise loans of Shandong Branch of Bank A by using the fuzzy comprehensive evaluation model in mathematics,combined with a large number of overdue and non-performing cases in the branch,the problems and causes in the risk management of micro and small enterprise loans of the branch are identified and solution measures are proposed for the problems.Based on the prominent features of local micro and small enterprise loan risks,the whole process the risk management of micro and small enterprise loan in branch is studied,not limited to a specific link.Through the investigation of optimizing the credit process,the purpose of improving the asset quality can be achieved.However,the financial industry is a typical pro-cyclical industry with a high sensitivity to the changes in the economic environment.The current study is only based on the prominent risks of small and micro enterprises in the current domestic and international economic situation.With the changes in the domestic and international economic environment and national policies,risks faced by small and micro enterprise loans of Shandong Branch of Bank A will change and a new round of challenges to risk management will be ushered in.Research on risk management of small and micro enterprise loans of Shandong Branch of Bank A is a subject that needs to be constantly updated.