Study On Risk Management Of Small And Micro Enterprises' Credit Business For China Construction Bank X Sub-Branch

Since year of 2018,China's initiatives to support the development of private and small and micro enterprises have been introduced one after another,especially for the price of financing and difficulties of financing.The People's Bank of China has introduced policies such as targeted financial reduction and other standards.It can be said that private enterprises and small and medium-sized enterprises are causing smooth operation of Chinese economy.After the Spring Festival in 2019,the first State Council Standing Committee Meeting proposed supporting commercial banks to replenish capital through multiple channels,further dredge the transmission mechanism of monetary policy,and promote the strengthening of finance for private and small and micro enterprises while insisting on not engaging in “flood irrigation”.The opinion issued a clear request to commercial banks,that is to improve their own capital strength,while allowing more credit funds to flow into private and small and micro enterprises.As a state-owned big bank,CCB is obliged to serve the real economy,support the transformation and upgrading of the industry,help the development of the people's livelihood,and solve the problem of social difficulties.In May 2018,CCB identified “Inclusive Finance” as a strategic business of the whole bank,aiming to solve the problem of social pain points and hardships for the country.Various types of credit products have also been developed and promoted in this context.However,as it is known,the average life expectancy of small and micro enterprises is short and the business risk is high.If CCB wants to develop the small and micro enterprise credit business safely,it is urgent to strengthen the credit risk management of small and micro enterprises.In this context,this paper takes “small and micro enterprise credit business risk management” as the research topic,and takes “CCB X sub-branch” as the research object,and strives to obtain effective credit risk management strategies for CCB X sub-branch through analysis and research.The overall writing idea of this paper is: risk influencing factors analysis-risk identification-risk assessment-risk prevention.Firstly,the risk influential factor analysis part introduces the development history of CCB's “Inclusive Finance” business,and then presents the basic data of CCB X Sub-branch.After the business characteristics and processes of the products for micro and small enterprises in CCB X sub-branch are analyzed,the risk factors at each stage are concluded.The risk identification mainly uses the relevant theories of commercial banks' credit risk management for small and micro enterprises,selects credit risk,operational risk,market risk and technical risk as the first-level risk indicators,and uses fuzzy analytic hierarchy process(FAHP)to construct the evaluation model for sub-branch X.The risk assessment uses the above-mentioned risk evaluation model to collect questionnaires,and selects 15 experts in small and micro enterprise credit business from X sub-branch as the survey object,and collects results from the experts.Then the author summarizes the related operations through the matrix.From the survey's results,it can be concluded that the current credit risk of small and micro enterprises in CCB X sub-branch is mainly due to credit risk and operational risk.Meanwhile,the credit risk rating is “high” level in X sub-branch.The risk prevention part combines the lessons learned from the overdue credit business of the small and micro enterprises of CCB X sub-branch,and puts forward suggestions on the prevention of credit risk and operational risk,which can help CCB X sub-branch to control credit risk effectively,and explore new risk management in the future.