Study On Small And Micro Credit Risk Control At China Minsheng Bank Changsha Branch

In recent years,the role of small and micro enterprises has been fully reflected in the process of China’s economic development. At the same time, the financing difficulties that small and micro enterprises have encountered in the development have attracted great attention from all walks of life. One of the important reasons is that banks can not effectively identify and control small micro-enterprise loans risk, and furthermore invested in small and micro enterprises timely and effectively.As the first major private capital to set up a national commercial bank, China Minsheng Bank proposed the credit strategy for the development of small and micro enterprises firstly in the domestic banking. In a few years, the small and micro enterprise credit business have becoming bigger and stronger. With the rapid development of the small and micro-enterprise credit business,Minsheng bank Changsha branch has entered into the structural adjustment phase, its small micro-credit business is facing new risks and problems.The study on small and micro enterprise credit status and risk control research of Minsheng bank Changsha branch based on the theory of small micro-credit risk management, and discuss the problem in followong aspects: First, the Changsha branch of small micro-credit business development process and the risks faced have been analyzed.Secondly, analysis of risk types of Changsha branch small micro-credit business has been studied, including the credit risk that resulting from a cascade effect that small and medium enterprises and their associated enterprises in difficulty, and liquidity risk due to the loan balance to grow exponentially, and operational risk and moral hazard yielded from the market square or core enterprise capital occupation, misappropriate,and collective breach by mutual and collective modes. Third, the problems that existed in the access to credit, development models, post-loan risks in Minsheng Bank Changsha branch credit risk management have been summarized,as well as the causes.At last, to solve the problems that existed in the Changsha branch small and micro credit business risk management, some suggestions have been put forward from the aspects of improvment of credit risk fine management, optimization of credit guarantee way and credit rating, optimization of small micro-credit process and supporting management mechanism, innovative small micro-financial products and services, and enhancement of professional team building and incentive optimization.The study on Minsheng Bank Changsha branch of small and micro credit risk control not only provieds a reference for its business development in small and micro credit risk control, but also provide certain references for other domestic commercial banks to develop small micro-credit business.