Research On Credit Risk Management Of Small And Medium - Sized Enterprises In Commercial Banks

Small and micro-enterprises have effectively promoted China’s economic growth and technological innovation, and have created a lot of jobs. More over it,they are also the basic cell and the life lines of our economy. However,financial difficulties of small and micro-enterprises have been existed for a long time.Under the external competitive pressures and the assessment of internal profit, domestic commercial banks will vigorously develop small micro-credit business as a business transformation opportunities.They have increased their investment in human, material and financial resources, which plans to open up a vast new world of small and micro business.However, the credit risk in small micro-enterprise hinders the pace of progress in the commercial banks.Therefore, how to manage the credit risk of small and micro enterprises scientifically and effectively becomes imperative in expanding small micro-credit business imperative.To sum up the experience of small and micro credit management in domestic commercial banks and research on it focused,the paper take FD Bank for example, how to carry out its advanced experience accumulated on small micro credit risk management will be analysed emphasized.summarizing its experience,then finding solutions for their risk management issues,Meanwhile,making study on a branch of FD bank about Circle Credit,focusing on the case of credit and credit risk management program design.Finally, based on the five issues noted above, the paper proposed five suggestions for small micro-enterprise credit risk management: improve the risk management system,building a credit rating system, the establishment of risk-based pricing model, sound risk warning mechanism to speed up small micro- financial innovation.