Research On The Management Of Small Credit Business Of QJ Bank Kunming Branch

Micro credit and traditional banking credit business has different ways of management and operation. Traditional bank credit services mainly can provide customers of sufficient value of the collateral and good credit ratings, but low-income groups and small micro enterprises that can’t provide effective collateral or no credit record are out of the credit object leading to the world’s poor and difficulty of loan of small micro enterprises. Micro credit began in the 1970 s, which was originally initiated by NGO, focusing on poverty reduction and social progress, using high manpower survey to assess the poor’s ability of credit by group lending post-loan supervision, to dole out micro credit to poor people, have got remarkable results. As the micro credit succeeded, the originally initiated non-government folk organizations are gradually transiting to commercial micro credit institutions, so as to obtain stable source of funds conveniently, extending the service objects from the "poor" to "poorer" crowd and smallµ enterprises to provide more comprehensive financial services at the same time, and accept the corresponding financial regulation. On the other hand, as the micro credit business technology is becoming more mature and influential, more and more traditional banks begin to learn and absorb micro credit technology, starting own micro credit business, some medium-sized banks even started to transit to micro credit institutions,to make the micro credit as their own representative business characteristics and advantages, in order to realize the dislocation competition with large banks.Under this background, the QJ Commercial Bank which is a small regional city commercial bank, has realized the great potential of micro credit, and has timely introduced the German IPC micro credit technology and business model. According to the actual necessary improvement of the local market in Yunnan province, QJ Commercial Bank has successfully introduced micro credit with their features, which has achieved good social and economic benefits. However,QJ micro credit of commercial Banks business, also has many shortcomings, such as high non-performing loan ratio, high staff turnover, lacking of risk management, lacking of the combination of comprehensive risk guarantee mechanism and so on, which have seriously restricted the QJ Commercial Bank’s micro credit to achieve the goals of business strategy.Form the QJ kunming branch of the micro credit of commercial bank problems for many reasons, there are internal management concept and management system, also has the external level of social and economic environment, including the lack of effective policy support, the current micro credit downturn led to increased systemic risk, customer credit before the credit investigation and credit evaluation process is not sound, lack of perfect risk management system, staff incentive and constraint mechanism design scientific and reasonable enough.In this essay, the author bases on his own experience and information during practice and research in QJ commercial bank branch in Kunming micro credit, combining the basic theory of micro credit and experience, systematically analyzes the QJ Kunming branch of commercial bank micro credit business problems and reasons: Pay close attention to the macroeconomic operation, adjust the direction of micro credit; Perfect risk management system and customer credit before the credit research and credit evaluation procedures; Set up reasonable employee incentive and constraint mechanism; Take positive measures to prevent moral hazard; Calls for a government department QJ needed to improve the commercial bank management related support policy.