"the New Basel Capital Accord," The Impact Of Small Business Loans, The Bank Issued

Loaning to small and medium enterprises (SMEs) has attracted much attention for a long time. SMEs could hardly get credit loans from banks because of their own defects such as information asymmetric and so on. In comparison with the Basel Capital Agreement and The New Capital Accord, the amount of venture capital for SME loans is calculated with different methods as well as different capital cost.On the other hands, new risk management model for SME loans as well as some traditional methods is also discussed. The new management models are mainly the credit scoring model, including the first and the second generation Z model and the Small Business Credit System. Furthermore, the impact of the application of the credit scoring model and the changes after the application of advanced risk management methods are analyzed with empirical data. In conclusion, this paper shows the final goal of The New Capital Accord: connect the loan approval,risk control and the earning ability of banks together, so as to further improve the development of banking industry.