The Risk&return Optimized Analysis Of Small And Medium-sized Enterprise Loan Projects

Small and medium enterprises(SME) play essential role in Chinese economy. They are even more critical for the social development and stability, especially from the perspectives of creating employments. However, at present SMEs encounter significant difficulties in terms of business financing, which considerably limits their developments. The main source of business financing relies on major commercial banks. Whilst realizing the importance of SME loans for the future growth of banks, practical issues slow down the advances of SME loans.The key issue involves the risk management and its lack of quantification tools for SME loans.This thesis discusses the methodologies which can be applied to study the investment risks of SME loans. Specially designed tools, including an artificial neural network model, are invented in this work to effectively quantify the risks based on historical data. The method proposed in this work presents a system of risk analysis and a feasible solution for decision making process. The innovative analysis method also serves as a guideline for project management in SME loans risk assessments.