Small And Medium-sized Enterprises Non-performing Loans Rate Control Analysis Of Joint-stock Commercial Bank In China

With the promotion of the interest rate liberalization, the development of thedirect financing channels, the strengthening of capital constraint and the issuing ofgovernment policies to support the small and medium-sized enterprises SME),commercial banks in China start their business adjustments, seeking new profitgrowth points and giving more Credit to the SME. This is of great importance to thesteady and sustainable development of the Chinese economy. But the SME have theirpeculiarity and the constant rise of the non-performing loan ratio has posed a greatchallenge to the crisis management ability of Chinese commercial banks.Starting from the transformation of the Chinese commercial bank credit business,this paper points out that in recent years Chinese commercial banks have seen theconstant increase of both non-performing loans and non-performing loan ratio.Thechange of the joint-stock commercial Banks non-performing loan ratio is moreprominent, consistent with that the joint-stock commercial Banks on small andmedium-sized enterprise credit business is more enthusiasm.So, this paper attempts toexploit the joint-stock commercial banks’ business model that can control thenon-performing loans of small and medium-sized enterprises effectively, takingChina Merchants Bank Company Limited (CMBCL) as an example.After introductionto the development strategy and credit model, the credit structure and non-performingloan ratio change of CMBCL, that is the comment on the credit crisis management ofCMBCL, which is based on the change of the SME’s non-performing loan ratio. Thethird chapter analyses the credit risk management of China merchants bank, andpoints out that China merchants bank has prudent credit risk management preferenceand only pay attention to the lending of loans is the main problem. The fourth chapter,an analysis of the credit crisis management experience of the SME at home andabroad is made, finding expression in the classification of the SME, financial indexand non-financial index and the adoption of advanced crisis management tools.Then,by integrating the advanced concepts and experience at home and abroad with the characteristics of the CMBCL and the SME, this article pointed out thatjoint-stock commercial bank should change the thought of management on the creditbusiness development of small and medium-sized enterprises, and establish relationsof cooperation with enterprises, and participate in the development of the enterprise,to provide a comprehensive range of financial services, at the same time, strengthenthe credit investigation and post-loan management and improve credit personnelprofessional ability,choose the operating cash flow as the first source of repaymentand try to cooperate with the vc institutions.In general, firstly this paper points out that Small and medium-sized enterprisesnon-performing loans rate of CMBCL is rising, and its control ability is limited. Thenthis paper puts forward joint-stock commercial Banks in China should learn tocooperation with small and medium-sized enterprise when face with the positivedevelopment of small and medium-sized enterprise business, change the previousloans light tube model, establish an effective credit investigation and post-loanmanagement, cultivate credit professionals, try to cooperate with vc institutions, toprovide comprehensive financial services to small and medium-sized enterprises andcontrol the non-performing loans rate at the same time, achieve win-win situation.