The Study On Credit Risk Management For SMEs Of Bank Of Changsha

Small and medium enterprise(SME) has been playing an important role in economic growth, prosperity of market economy, promoting employment, increasing revenue, and so on. Along with the development of the international financial crisis, governments at all levels have enacted policies to increase financial support for SMEs to solve the problem of financing. Loan business, which maintains the basis for bank survival and development, is an important business for banks, and bank loan is the most important external source of SME financing. Seeking SME customers and expanding SME loan will be a new growth point of bank loan, with the more mature of direct financing market, and the more intense competition for large quality corporate customers.Firstly, this paper overviews elements of SME credit risk management by organization, goals and cycle, revenue model, credit support mode. Then, it takes the way of combining theory with practice, and introduces the SME credit business development and risk management condit ions in bank of Changsha. In order to explore the common difficulties for commercial bank the current credit risk management of SME loan, it selects asymmetric information between bank and enterprise, It analyzes the problems of SME credit risk management existed in bank of Changsha, from the three aspects including the credit risk management system, technical methods, credit management services, and seeks out the reason from three aspects,including commercial banks, small and medium enterprises and their external financial environment, it is the internal control of commercial bank, the SME’s own management and external financial environment that consist of the reason for the problems of the current SME credit risk management.Credit risk, which is the main risk for bank management, is the key to keep the assets safe.Based on the elaborate commercial bank risk management theory, combined Changsha Bank SME credit management in doubt, difficult issues, study the current experience in Changsha Bank SME credit r isk management, and summarizes its problems, analysis of the causes of the problem, and according to the above analysis puts forward measures and safeguards to improve SME credit risk management. SME credit risk management study carried out, has important practical significance to Changsha bank credit aggregates, while maintaining the growth of small and medium enterprises, to guard against credit risk, security and asset management to maintain profitability.Studies suggest that the high transaction costs caused by the lack of specific credit risk management. Finally, It make relevant suggestions and other aspects of product design optimization from a risk management system, the credit rating system, select target customers optimize, credit mode innovation. And proposed organizational structure, human resources management and credit risk management culture of safeguard measures. Research on SME credit risk management of commercial banks, has great practical significance for guarding against credit risk and maintaining the safety and profitability of loan assets, while keeping the growth of SME loan.