Risk Management Research Of GL Company Credit Business Of ZS Bank

There are a large number of small and medium-sized enterprises in our country, they play a more and more important role in the development of national economy, especially in promoting technology research and innovation, optimizing the economic development environment, providing more jobs, and increasing the income of residents. In recent years, the small and medium enterprises have developed rapidly, but they also met such difficulties, financing difficult phenomenon is particularly prominent. At the same time, the interest rate marketization, multi-level financial market system establishment, the rise of Internet finance bring a shock and challenge to the traditional business model of the commercial bank. As the situation have changed, the commercial bank gradually abandoned the big base of traditional business model, and began to expand the letter the SME credit business, which will play an important role in the commercial bank. With the rapid development of small and medium-sized enterprise business, how to prevent risk and controlling work of the small and medium-sized enterprise becomes an important subject.According to the bank’s credit policy and the existing SME credit risk management evaluation index system, ZS Banks conduct a comprehensive assessment to GL Company credit business risk. The assessment work carried out from the following eight aspects. The first is the company management and the management level. The second is the main financial index. The third is the situation of enterprises and natural shareholder information. The forth is the development of the industry trend. The fifth is the management of risk analysis. The sixth is the market risk analysis. The seventh is the use of loans and repayment sources. The last is the credit guarantee. Through the evaluation of the above eight aspects, it can be summarized that the management status of GL Company is quite well, and the default risk is quite low. Therefore, ZS Bank agreed to loan the company50000000yuan, which is mortgage guaranteed by its own factory plant and the legal representative person joint liability guarantee. After credit approval, ZS Bank loan the GL Company50000000yuan in the one year, in accordance with the bank lending operation process. After the expiration of the loan, the business cycle difficulties triggered the overdue happened. Despite the GL Company has paid off the principal and interest of the loan in the loan overdue within1months to ZS Bank, has brought a series of negative effects for the ZS Bank goodwill.After the analysis of this case, it can be summarized that the following problems exist in the process of GL Company’s credit risk management. The first is lack of technical defects. The GL Company has financial anomalies, related party transactions, and excessive credit etc., but it were not recognized. The second is lack off the post loan management. It failed to give feedback of the enterprise management changes frequently, and the company on the downstream market of GL Company’s operating costs rising sharply issues is not timely warning, which caused the enterprise funds liquidity problems and endangers the normal operation of enterprises. By the analysis of the ZS Bank to the credit risk of GL Company, it indicts the defects and the insufficiency of internal management of ZS Bank, and puts forward to the optimization credit strategy.