Research On Credit Risk Control Of Small Business Loan In J City Firm

With the reformation of the financial system in China, the city commercial banks in our country have got a rapid development, and they have been an important force which can’t be ignored in the national economic and financial system. In the dual background of the increasingly fierce competition in the banking and the current downturn situation in the economy, the city commercial banks face huge challenges and threats. As the city commercial banks use the small business as footholds generally, the risk management of the small business in the bank has got an unprecedented attention. As the late start of the commercial banks in our country, they have the weakness of the innate deficiencies. The problems such as the insufficient capital, the poor asset quality and the high ratio of the non-performing assets have restricted the healthy growth of the city commercial banks. As the small businesses have huge business risk and lack the strong collaterals as well as the ability to resist risks, many city commercial banks still take the risk control mode of the large or the medium business, thus the loan risk of the small business obviously exposed, particularly the credit risk, brings small business the difficulties to the business expansion. Improving the level of the credit risk control and completing the mechanism of the risk control in the small business are the major issue which the city commercial banks are facing. As the ability of the credit risk control has a close relationship to the sustainable management of the city commercial banks, so owning the leading risk control ability and level have become the most important core competence of the city commercial banks.This study will use the J city commercial bank as a case study, and in the basis of arranging the theories of the credit risk control, especially analyzing the current situation of the credit risk control and the existing defects and causes in the small business of the J bank. Then reference the advance experience of the risk control of the domestic and foreign small business loans. What’s more, to propose the suggestion that through the three aspects to improve the credit risk control in the small business loans of the J banks, i.e. the construction of the credit risk control ability of the innovation small business loans and complete the risk control mechanism and complete the risk control environment. And provide the reference of the credit risk control of the small business to the other city commercial banks.