Research On Risk Management And Sustainable Development Of Small Micro Loans

Studying the sustainable development and risk management of small micro loans has always been the core issue of the steady development of city commercial banks.A good risk management and control model can greatly reduce the possibility of the risk of small micro loans,thereby improving the asset quality of banks and fundamentally improving the profitability of banks.Small micro enterprises are an important part of China's real economy,playing an important role in promoting the growth of the national economy.However,small micro enterprises are relatively unregulated in finance and opaque information.It is difficult for banks to fully describe and evaluate the risks of small micro enterprises,the micro loans which city commercial banks send to small enterprises are full of variable.This paper has called a large number of cases of high-risk sub-branches of S city commercial bank.Through case summary,the author find that,When S city commercial bank developed across regions,organizational structure and process management became complicated.Due to lack of experience in branch management and regional cultural differences and so on,when the headquarters management mode of Taizhou was copied to each region,some regions were highly risky.The main reasons for the high risk of S city commercial bank are as follows:First,in terms of operational risk,in the whole process of small and micro loans,due to irregular operation,unauthorized changes in the use of loans and loan investigations flowing form have resulted in credit risk.Second,in terms of management risk,after S city commercial bank cross-regional operation,due to the expansion of management radius and the length of the management chain,the risk control concept is reduced in the process of promotion,the risk training management system is not perfect,and the risk awareness of grassroots account managers is lacking.Third,credit risk of S city commercial bank is also caused by the excessive financial services,high customer costs,and information asymmetry.Fourth,in terms of market risk,the adverse effects of traditional backward industries and the fierce competition in the small micro loans market are the main reasons for the risk of S city commercial bank.On the premise of thoroughly analyzing the above-mentioned risk factors,at the end of the paper,the prevention and risk control countermeasures for promoting the sustainable development of small micro loans based on the above-mentioned research institutes are proposed.