Research About Credit Risk Of Micro-loans Companies In Qingdao

Since the1970s, kinds of micro-loans companies have had greatdevelopment in developing countries of Africa, Asia, Latin America. InChina, micro-loans companies also have had a rapid development of about‘several decades. With the help of ‘loan with”out deposit policy indeveloping micro-loans companies in China, the capital of civil societycan freely offer money for micro-loans markets, which promotes thedevelopment of financial in rural areas and small or micro enterpirses.In2009，the first batch of micro-loans companies was built in Qingdao.Aft’er several years cultivating and developing, Qingdao becomes animportant area to develop micro-loans companies in Shandong Province.Because of the changing policies and keen competition, the low capabilityin management of credit risk restricts the development of micro-loanscompanies. This article begins its research from the problems which werefound during supervising. To find the potential reasons, the articlefocuses on the difference between micro-loans companies and commercialbanks. In order to build and improve the supervising in policy and themanagement of credit risk in micro-loans companies, the article analysisthe cause of credit risk through a model and learn from the practice andexperience micro-loans agencies.The article outlines the background of micro-loans companies in China.With the help of theories at home and abroad and the current situationsand development of micro-loans companies in Qingdao, the article analysislhe inevitability of credit risk in micro-loans companies. Then uses themodel of risk evaluating based on Fuzzy Analysis Method to analysis thereasons of risk and evaluates the data result of the model. Besides, thisarticle comparison and analysis from the credit environment, policies andregulations, special factors, corporate governance and internal controlmanagement and commercial bank credit risk. Finally, in view of the QingdaoCi ty petty loan compan’y s risk of having corresponding po] icy precautions,we establish and perfect the supervision system, management mechanism anda series of early warning system. The small loan company research focusesmost]y on individual loan company current situation and development, mode,hick of whole industry supervision and credit risk management of theoverall business analysis. In this article, by using the combination of theoretical and empirical method, with Qingdao city the petty loancom’panys credit risk analysis as an example, live on the small loancompany industry credit risk management and prevention methods.