Research On Credit Risk Of The SME Loans In Commercial Bank

As Small and Medium Enterprises(SME)are playing more and more important role in our national economy,the financing problems of SME becomes increasingly obvious.The main outside financing channels for SMEs in China is loan from commercial banks.While the nature of SMEs including small scales,poor anti-risk capacity,less transparency in information disclosure proves them carry high credit exposures and this has become the main bottleneck for commercial banks developing their SME loan business.A solution to effectively manage the credit risk of SMEs becoming one of the top priorities of a commercial bank.This article starts with the theoretical basis,combined with the analysis of SME loans on the standpoint of the commercial banks shows the current situation of SME non-performing loans(NPL)and issues of commercial banks in managing SME credit risk.This analysis has proved the credit risk is becoming the core exposure in SME loan business.From the causes and charities of credit risk,in combination of my personal working experience in commercial banks of SME loans,I hereby give some solutions to effectively decrease the credit risk in terms of risk identification,assessment and control.