Research On Commercial Bank 's Credit Evaluation Of Small And Small Enterprises

The financing difficulties of small and micro enterprises (SMEs) are a timeless issue. As a supplementary of large and medium-sized enterprises market, small and micro enterprises are the fresh blood of China’s economic development. SMEs are mostly involved in livelihood industry, which contributed a lot in terms of convenience and enriching lives of ordinary people. Currently, with the rapid adjustment of economic structure, some traditional industries gradually decline, and the emerging industry has not formed a considerable scale. A number of industries and SMEs which have promising potential are still in their early stage of development, therefore the credit support to SMEs should be increased without delay.As the main force of China’s financial markets, the role of commercial banks in SMEs financing is irreplaceable. The credit characteristics of SMEs and serious information asymmetry increased the cost of commercial banks for evaluating its credit before the loan. The continuing negative incentives push commercial banks to dispel the improvement of credit evaluation system for SMEs.Under the new situation, it is more difficult for commercial banks to earn profits from large enterprises and projects (capital market is gradually improving, interest rates marketization is accelerating), forcing major commercial banks to expand SMEs credit scale based on the original. Traditional credit evaluation system cannot adapt to a new stage of development, thus this paper examines the entire SMEs credit evaluation system from the perspective of commercial banks, which mainly focuses on research of indicators and methods. In the meantime, this paper introduces several widely used abroad scoring models. During the introduction process, based on the comprehensive consideration of China’s specific national conditions, commercial banks should take its essence, and remove its dregs, to find improving measures and methods.