Credit Risk Management Research On Small And Medium-Sized Enterprises Of Rizhao’S Bank

As a huge developing country, China has many small and medium-sized enterprises, since the reforming of the economic system, small and medium-sized enterprises has become an important cornerstone of economic prosperity, promoting employment and social stability. Small and medium-sized enterprises in China accounted for 99% of the total enterprises, SMEs accounted for the country’s total industrial output value and profits and taxes accounted for 60% and 50% respectively, and provided 80% of employment opportunities. Therefore, the bank should pay full attention to the importance of small and medium-sized enterprises. Recently, the small and medium-sized enterprises credit business is more and more valued by commercial banks and they have been increased the proportion of the overall credit business. However, as a result of information asymmetry, poor risk-resisting ability, high default rates and other factors, the credit risk is being exposed and non-performing rate goes on increasing. So it is necessary for commercial banks to deeply study the small and medium-sized enterprises credit risk management as well as developing their credit business.Based on the information asymmetry theory, transaction cost theory and credit rationing theory, this paper summarizes four different stages of the commercial bank credit risk management and then gives the description and interpretation of the different stages of manifestation. Then, through researching the present situation of credit risk management in Rizhao’s Bonk, we concludes that the main problems exist on poor sense of credit risk management, incomplete credit risk management system, unsound credit risk warning system, unreasonable credit risk management evaluation standard. After discussing the foreign bank credit risk management experience, we put forward the relevant solutions, including strengthening the sense of credit risk management, adjusting the organizational management institutions, speeding up the business process, innovating credit products and improving the credit risk evaluation system, and to explore the way and direction of S bank’s development. Finally, we give the conclusions and outlook.