The Invesyigation Of Risk Management In The Chattel Mortgage

With the deepening of China’s economy and global economic integration, the global economic changes in the growth of China’s economic is gradually increasing. Since 2012, the occurrence of the European debt crisis led to a slowdown of economic growth in Europe and America, as well as the global economic downturn, have on China’s economic and financial development presents greater challenges, economic and financial development of the situation is more serious.During the process of economic transformation period, demand for loans of SMEs in China increases, as a major force in the expansion of employment and stimulate economic growth. In China based on bank financing to the dominant structure, borrowing from banks has been becoming the most important financing channels. Our commercial banks in order to control the risk, the credit mortgage guarantees and assurances guarantees are common. SMEs just have property idle, as a lot of inventories. They have not enough immovable property to be mortgaged. The problem of financing has always been plagued by SMEs, but the capital adequacy ratio is the lifeline of enterprise development, so SMEs are facing increasing difficulties.There are theoretical analysis and case studies, this paper presents a hybrid.Firstly, the author started the study from the theory summary of chattel mortgage to define the concept of chattel mortgage. The paper introduces several features and key points of chattel mortgage and analyses the necessity of developing chattel mortgage business to commercial banks in China. Secondly, the author gave a brief description of the development of steel trade enterprises and their current financing situation. This paper reveals main risks in chattel mortgage business of steel trade enterprises by combining the specific case study. The author also explained the causes of the risks and listed several measures to avoid them for the hope of helping steel trade enterprises in China to transform and upgrade as they can refer to this paper as a guidelines.