Risk Management Of SME Credit Business In Commercial Banks

Along with the development of the market economy,SMEs have developed thriftily in recent years,and has become the backbone of our national economy.In spite of the great contributions to the economic development,SMEs still has some defects.Since most of the SMEs are private enterprises,their operating and financial system are not very informal.Sometimes,the actual controller or important shareholders of SMEs are reluctant to disclose their internal information,which exacerbates the situation of information asymmetry between banks and SMEs,thus increases the credit risk.Therefore,the prevention of SMEs’ credit risk,is an important topic for every commercial bank.Based on the analysis of the economic recycle theory,transitional and modern credit risk measurement model,this paper firstly introduces the characteristics and normally used risk control methods for SMEs.Take BOC P subbranch as an example,the paper firstly analyzes the credit risk management case of company A,and introduces the existing credit risk management system,finally indicates the potential problem that system may have in addition.Specific to the stated problems above,some methods need to propose to strengthen the SMEs credit risk management.The control methods include improving the internal organizational structure,optimizing credit approval process and post evaluation mechanism,strengthening the innovation of operation and product etc.Meanwhile,proposing the targeted business strategies and solutions correspond to the present "new normal" economy.Finally,the paper will conclude that big data technology will act as the symbolic and technical revolution instrument to lead the development of society.Big data technology will completely change the commercial bank’s risk control mode and improve the bank’s core competencies as well.