SME Credit Assessment

In recent years, importance of credit evaluation has become increasinglyobvious. Compared with developed countries in Europe, development of creditevaluation of China is comparatively backward. Today, with the quick developmentof market economy, establishment of credit evaluation system for middle andsmall-sized enterprises has been the key to provide scientific decision support tocommercial banks as well as to improve effectiveness of credit evaluations formiddle and small-sized enterprises. There has been a lot of deficiencies of debit andcredit to middle and small-size enterprises for commercial banks as well as the creditevaluation to them. The existing evaluation system cannot evaluate the credit level ofthe enterprises correctly. From the aspects of evaluating method, selection of indexand weight, evaluation index system commercial banks is using at the moment morefocuses on debt paying ability and profitability but ignores the abilities ofdevelopment and innovation. To evaluate credit of middle and small-sizedenterprises, it is not applicable and unfair because it is unable to indicate developingstatus and prospect of the enterprises. Therefore, it can not fully tell the credit levelof them. As one of the most important factors of loan issue, such inapplicable andincomplete evaluation result causes difficulties in financing for middle andsmall-sized enterprises.The first part is introduction including research background, researchsignificance, research content and its methods. The author briefly describesdevelopment background, problems of middle and small-sized enterprises as well asthe development situation of credit evaluation system. Research on credit evaluation for middle and small-sized enterprises has great significance for financing,procurement, manufacture, marketing and services. So the paper is of great researchvalue. The second part is literature review. It summarizes basic theories of creditevaluation by literature review. Concept of credit and credit evaluation, methods anddivision of middle and small-sized enterprises and their features are included in thispart. The third part focus on analysis on the current credit evaluation situation. Firstof all, China is advanced in policy supplement, application of data miningtechnology and application of combination of financial and non-financial indexes.However, prominent problems are still existing and greatly impact the developmentof credit development. In the fourth part, taking CIB as background, it studies thedevelopment situation of credit evaluation in middle and small-sized enterprisesincluding principles, methods and its management process. Based on theimplementation status conducted by CIB, it is possible to reflect the currentdevelopment stage of commercial banks in China. Credit evaluation system of CIBis advanced and is a useful reference for other commercial banks. Based on currentsituation of credit evaluation of CIB, the fifth part summarizes the prominentproblems and makes analysis. Main problems focus on aspects of management andmethod. Hence, during the system reformation, tools and methods need to bere-designed based on practical features of middle and small-sized enterprises, but itis also important to strengthen internal management so as to prevent any loophole toinfluence its function. The sixth part is conclusion.It has great significance to take CIB as research background for study of creditevaluation of middle and small-sized enterprises. I think that credit evaluation ofmiddle and small-sized enterprises has major significance for their financing.Improvement of credit evaluation system of CIB would enlighten other banks inChina.