Research On The Credit Risk Management Of Small And Micro Enterprise Credit Business In Chinese Commercial Banks

In view of Commercial Bank Small Enterprises Loan applicants intentionally hide or reported incorrect or false credit information which getting more common,Commercial Bank is facing challenges in corporate governance to monitor,screening of applicants data and regulatory requirements.Hence,presence of credit risk associated with risks such as liquidity risks,transparency of credit information,financial strength are among the issues and problems identified under the Risk Management which are faced by the Commercial Banks.Among all the risk factor,the credit risk being the most critical risk which need to be assessed and mitigated.Associated with credit risks are risks such as ethical in moral risks and operational risks will ultimately resulting in client breach of contract creating uncertainty for the Banks.The accuracy and completeness of Small Enterprises Loan applicant's credit history information is the main risk for the Bankers which will be lead to client's breach of contract.On the closer study in regards operational risks of X company,a Commercial Small Enterprises Loan applicant as an example: the loan process throughout all stages of business risks shall be analysed.An inductive analysis on various stage of operation process “before loan”,“in the loan” and “after loan” is monitored and analyses combining with latest research and evaluation on various stage of operation process to be applied to actual loan process in order to assess,identify,mitigate and lowered risks in order to made an accurate assessment providing feasible and theoretical basis for Commercial Bank's in handling all future “Commercial Bank Small Enterprises Loan” to ensure business efficiency and stability.