Small Business Loans Risk Management Of Small Commercial Bank

The past 30 years, with economic development and the development of technology and business activities, commercial banks in China has experienced several major state-owned commercial banks from the monopoly to the present hundreds of flourishing commercial banks situation. Now parts of rural credit cooperatives, city commercial banks and local financial institutions such as the wave of reform and opening up large-scale development, these commercial banks registered capital of a small, weak capacity to withstand risks, coupled with the commercial activities of the complex, making the risk of small and medium commercial banks management more difficult and important.Commercial bank risk management refers to the daily operations of commercial banks in order to investigate the final analysis to identify and measure risk transfer, reduction of commercial banks from excessive risk and may suffer losses. Risk management, has been in recent years, the global financial community's main task, Basel from before relying solely on the core capital adequacy ratio to analyze risk, evolved into today's new risks of the three pillars of Basel II to prevent the risk of commercial banks. China's banking sector has been in government monopoly business, truly commercial operation of the time is not long, up to resist risks is weak. But with the financial globalization, China must join the international financial environment. China has adopted a sub-branch System Management Mode, Industrial and Commercial Bank of China and other large commercial banks have total capital of the world's top banking front, yet until the end of 2009, to Shi Ying Xin Xie Yi regulatory risk Basel commercial Yinxing Quehen Shao, for those who just the establishment of a small commercial bank is even more difficult to adapt to the nationalization of the risk control standards. China's Small and Medium Financial To go abroad or receiving foreign commercial banks in the domestic competition, risk prevention measures and capacity to be improved.Second, the current level of risk measurement techniques are not very high and penetration is not high, especially for small and medium commercial banks, staff quality is not high, the staff know how to measure risk little. A lot of risk analysis is qualitative analysis by policy makers and individual subjective views, which lack a long period of China's financial theory and empirical research has much to learn. In the academic as well as others, can be used in practice with no theoretical basis, what more can not be a good quantitative model can be used. Third, the small commercial bank risk management mechanisms are inadequate.Currently small and medium commercial banks are basically risk management department, but departments within the small and medium sized commercial bank status is not high, are a "blank checks." In order to create profit as the main target of small and medium commercial banks, risk management, neither the Department of inspection authority can not directly create value, making this its important sector is less than the individual, corporate finance department, auditing department, at present, small and medium business Bank's Risk Management Department can be essentially useless. For example even if the risk taken in order to prevent internal rotation of the system, but the rotation gradually evolved into a risk management personnel changes, the staff regarded this opportunity to fight for better positions as an important opportunity. And fatigue long-term operation and the work of the same work will make the risk seem greater in the accumulation.This combination of practical work experience in risk and risk management, focusing on the risks of small and medium types of commercial banks and make some recommendations.