Study Of The Microcredit Company’s Customer Credit Risk Factors

The international communities usually name the financial services providing to low-income people and micro and small enterprises those who do not fully receive financial services as microfinance, which in China often translated as micro-credit. Micro-credit was introduced to China to solve the "three rural" issue, however, micro-credit is not only serve the low-end customers who are beyond the reach of traditional financial institutions. Micro-credit as one of micro financial activities is a very important aspect to build inclusive financial system. In commercial market micro-credit means SEMM-self employed mass market.International SEMM’s successfully experience told us that microfinance institutions should display fully initiative, don’t rely on government’s support to run, it should be self-financing through the operation to break even or even get profit. This is the only way to b sustainable development SEMM institutions. Through this model micro-credit can really become an industry, long-term financing for the poor to solve their groups to optimize’the allocation of resources and promote the social.The characteristics and service targets of the SEMM business determine its non-performing loan rate is usually higher than other loans, in addition, SEMM institutions often do not conduct business in the advanced credit risk management mechanism, the loan decisions often made by a relatively high degree of qualitative analysis, which resulting excessive lending caused by incentives of the loan officers,as well as different levels of loan officers result in different standards, and high operational costs caused by maintenance of a considerable number of loan officers. These problems make microfinance credit risk management necessary. If you can not effectively improve the level of SEMM risk management, control the non-performing loan ration, it is bound to hinder the healthy, rapid and sustainable development of SEMM.Therefore, credit risk is the weak performance of the risk of trading partners. To the business institution the risk is the debtor unable to repay the debt. So, effectively manage the credit risk is the very important key to develop SEMM.This article from the definition of microfinance and microcredit company, combining with the study of microfinance credit risk at home and abroad, by adopting the combination of normative discussion and empirical research methods, trying to find out the influence of commercial microfinance company customer credit risk factors, and establish the forecast model.At present, domestic microfinance institutions to credit risk management mostly use the expert evaluation method, there are many problems and the insufficiency, but it’s difficult to meet the needs of microfinance thrive. Logit model is adopted to improve the credit rating, loan officer can focus on the factor which has a significant impact on customer delinquent behavior for priority review, and through the Logit model to forecast customer credit. Avoid the wrong credit decision. Also avoid the credit decision is different for the loan officer level is uneven, the loan officer subjective mood change, focus on the different Angle. In addition, the efficient and effective credit evaluation model can reduce the number and volume of the credit personnel, to improve the efficiency of loans, reduce the business cost of microfinance institutions. So the research for microfinance institutions to credit risk management has important practical significance.