Research On Commercial Banks’ Loans Risk Evaluation Index System To Small And Medium-sized Construction Enterprises

In recent years, Chinese financial institutions on behalf of commercial banks have beencarried out supply chain financial services in the manufacturing industry to tackle thefinancing problem of SMEs, as well as expanded the business and markets, which improvedtheir profitability. However, with the construction industry booming in recent years, financingdifficulties in small and medium-sized construction enterprises have become increasinglyprominent. For commercial banks, small and medium-sized construction enterprises are amarket need expanding urgently. Meanwhile, financial business model which has beensuccessful in the manufacturing supply chain becomes new credit model for the bank toexpand the construction market. However, because original financial credit risk evaluationindex system in manufacturing supply chain cannot meet the construction industry,commercial banks are in urgent need of a financial credit risk evaluation index system forsmall and medium-sized construction enterprises which is also applicable to constructionindustry.To address this issue, this thesis will introduce the supply chain finance into constructionindustry to establish credit risk evaluation index system for commercial banks based onsupply chain finance to evaluate small and medium-sized construction enterprises, thussolving the problem which is effective and used for reference.From the perspective of commercial banks and based on in-depth analysis of the resultsof existing research, literature and practical operation, the thesis expounded the concept andcharacteristics of supply chain finance, as well as defined range and features of small andmedium-sized construction enterprises based on the supply chain finance. The thesis analyzedexisting commercial bank supply chain finance credit risk indicators and used literaturesedimentation, consolidation of similar items, general factors that split second merger,frequency filtering and empirical analysis methods to filter credit risk factors of commercialbanks which have impact on small and medium-sized construction enterprises, as well as tookthe eliminate correlation drop dimension principal in component analysis to extract the keyfactor. Credit risk evaluation index system for commercial banks based on supply chainfinance to evaluate small and medium-sized construction enterprises was established. Originalideas of this paper are as follows:(1)Using literature review, based on the supply chain finance theory, the paper introducedprevalent manufacturing supply chain finance into the construction industry, and built a smalland medium-sized building supply chain conceptual model.(2)The thesis established 4-round filter mechanism based on similar items merger, splitsecond general factors combined, frequency filtering and empirical analysis to filter the 426factors round by round, screening out 30 factors. (3)Based on the supply chain risk management theory and finance theory, the thesisestablished credit risk evaluation index system for commercial banks based on supply chainfinance to evaluate small and medium-sized construction enterprises, applying principalcomponent analysis combined with data value of affecting factors according to the surveysobtained from 10 commercial banks and extracting sub-index level of 30 factors filtered outbefore.