Loan Risk Management Research Of Small

In recent years, Sall firms play a very important role in the development of Weihai city, promoting economic development, making an active market and increasing employment opportunities. But Sall sized firms(S) often did not get the loan easily, all over the world, and this has been hampered their development. It is because asymmetric information, price discrimination and higher financing cost and so on. Not as the big and medium sized firms, the management system of S sized firms is imperfect, the financial data and other characteristics are not clear, these all made them get loan hardly. Although S sized firms have getting more policy caring and financial support from government as well as financial institutions, due to their attributes of limited scale, restricted management level and volatility to economic fluctuation, there is still a huge restriction for S sized firms to get enough loan. Recently, banks are also facing challenges from many areas, such as deposit and loan service. Generally, the concerns about investment to S sized firms usually based on their ratio of loan service risk. While if banks could do more research into S sized firms’ loan service flow, they are able to seize the potential profit from S sized firms.This article first summarizes the research status of loan service risk management of S sized firms at home and abroad, and then analyzes the causing factors of S sized firms loan risk. Referenced from abroad advanced experience in managing loan risk and financial theory, this article would study the current challenges of S sized firms loan service flow based on the research study of PSBC bank Weihai branch. This article would apply the analysis on the process of the loan service flow, from the beginning, during, to the end, and at the same time, giving benefit suggestions around staff’s professional level, process optimization and risk monitoring.