Research On SMEs Credit Risk Management Of Zhuzhou Branch Of Bank Of Communications

Commercial banks’ survival and development is based on credit business, animportant indirect financing channels for SMEs also is bank credit at present, SMEcredit business is becoming "new battlefield" of commercial banks occupying marketshare in credit business with more intense competition for large quality corporatecustomers. The main risks faced by commercial banks is credit risk, controllingcredit risk is the key to ensure the safety of bank assets. Therefore, qualitymanagement to commercial banks of small and medium-sized enterprise creditbusiness risk is important safeguards for commercial bank credit business expansionand maintaining its own assets security, liquidity and profitability.First of all, this article defines the concept of SMEs, noting that the particularityof commercial bank credit risk of SMEs, introduce the current widespread use ofcommercial bank credit risk assessment methods and indicators, and then describesthe theoretical basis for SME credit risk management from four aspects, includingasymmetric information theory, enterprise life cycle theory, loan commitments andcredit rationing theory. Then we introduced Zhuzhou Branch Bank SMEs creditbusiness risk management status combining with current development of ZhuzhouSMEs and Zhuzhou Branch of Bank SME credit business development by linkingtheory and practice. Finally, in order to analyze Zhuzhou Branch of Bank ofCommunications SMEs credit risk management problems, this paper selected threeangles: commercial bank loan before the risk identification, risk assessment and creditin loan risk control. We believe that it commercial bank organizational structure, riskmanagement processes， information systems, risk management methods and tools,risk management professionals and risk management mechanisms, and many otherdefects which lead to problems of current Bank of Zhuzhou Branch SME credit riskmanagement.Based on credit risk management theory and advanced experience of foreignbanks, this paper proposed to improve Zhuzhou Branch Bank’s credit riskmanagement measures for SMEs by means of perfecting organizational structure, riskmanagement processes and enhancing the three major risk management mechanismand other aspects. At the same time, it could enrich safeguards running smoothly by creating a sophisticated credit risk management culture, improving informationsystems and increasing risk management talents.