Research On Risk Management Strategy Of DZ Bank SMEs' Joint Guarantee Loan

The group lending, popularized and applied in our country, solved some problems of SME, such as lack of collateral, low credit level and so on to some extent. It promoted the rapid development of SME and enhanced the bank credit revenue, making a win-win situation. However, based on the background of new normal of domestic economy which is epitomized by three major trends, group lending default happened in some areas especially in the eastern coastal provinces and cities, the Pearl River delta, Yangtze River delta and other places. It significantly increased the non-performing loan ratio of commercial banks, and made group lending risk prevention and management of SME imminent.This paper which set the DZ bank for research object, mainly analyzed the problems of group lending of SME and discussed the countermeasures to solve the matter of risk management of it with the methods of theoretical research and case analysis. Firstly, based on the analyses of regular operation conditions in the framework of games of incomplete information, it reviewed relevant theories of group lending and bank credit risk management home and abroad and elaborated the present status of development and risk management of DZ bank group lending. Secondly, it described the development and risk management of DZ bank SME group lending. It took the case of group lending risk named TongDe mutual guarantee center for example, analyzed the problem of DZ bank group lending management. Finally, it proposed countermeasures around two aspects:strengthening the internal risk management and external emergency management.The contents of this paper are as follows:the first chapter mainly discussed the background of the subject, research value, literature review home and abroad, research thought, research method, research content and main innovative points. The second chapter was mainly about the theories of group lending risk management and status quo. It mainly included two parts:one is expounding the theories of group lending of SME and bank credit risk management; another one is analyzing the premise condition of operating well of SME group lending from two aspects in the framework of games of incomplete information:the game between bank and coinsurance body, the game among coinsurance members. The third chapter analyzed the present situation and problem of SME group lending risk management. It mainly included three parts:one is elaborating the group lending risk management; another one is analyzing the risk of the group lending;The last one its cause based on the case. The last chapter is the strategy of solving the problem of SME group lending. It mainly included three parts:one is putting forward some countermeasure to promote the risk management ability of DZ bank itself from several prospects:strengthening loan review; strengthening internal control; making credit rating scientifically; promoting personnel quality and improving emergency safeguard. The second one is putting forward establishing and perfecting the mechanism of DZ bank overall risk evaluation from two aspects:strengthening internal risk evaluation and external risk evaluation. The last one is promoting the measures to perfect emergency mechanism from several aspects:establishing the platform of risk prevention and controlling, early warning and disposal; perfecting the system of credit supervision; accelerating the construction of social credit system and improving enterprise’s financing and reimbursement ability and so on.The innovation points of this article are as follows. Presently, there is no systematic research on the theories of SME group lending risk management from the view of bank. The paper aimed to analyze the case of SME group lending of DZ bank based on describing the theories of group lending, credit risk management and group lending operation conditions. And then, it found the problem existed in the group lending and put forward risk management strategy. Therefore, it has important reference value to dispose the risk of SME group lending and promote the healthy operation of SME group lending effectively.