Research On Risk Control Of Small Business Loan In

With the rapid development of economic globalization, the marketization process ofinterest rate in china is also rapidly moving forward. In order to increase interest revenue,more and more financing institution focus on micro and small enterprise credit market.However, micro enterprise is in the vast majority in the market of micro and smallenterprise, Its number and wide distribution play very important role in china’s nationaleconomic development, the stand or fall of its development, indirectly impact theemployment and Per Capita GDP of our country. For years, in order to promote thedevelopment of micro and small enterprises, domestic financial institutions positiveattempt to research and development financial product, however, have little effect becauseof the asymmetry of information. For controlling risk, strictly control the design of theproduct and the lending process, at last leads to few eligibility. So, how the banks toresearch and development financial product, and go with the perfect risk control processes,in view of the actual situation of micro and small enterprises, will be a very importantelement which restrict itself to expand the market of the micro and small enterprise[70].This paper based on researching the risk control process of the micro and smallenterprise domestic and overseas, by analysing and comparing the way of risk control inmicro and small enterprises loan business, which separately in the financial instructionsand in the Baoshang Bank[71], analysis indicates that the risk control’s advantages anddisadvantages in Baoshang Bank’s micro and small enterprise loan, and gives suggestionsfor improvement and achieving perfection, thus effectively guard against the risks,improve the quality of assets. First introduces the risk control model of Baoshang Bank’smicro and small enterprise loan in the form of case, and summarizes the questions whichhappen during its development, and point out the existing problems[72]. Then, points out therisk control model’s advantages and disadvantages in Baoshang Bank’s micro and smallenterprise loan, by comparing with the same trade at home and abroad. Finally, withreferencing the advanced pattern in the same trade, gives suggestions for improvement andachieving perfection on the risk control model of micro and small enterprise loan inBaoshang Bank.