The Research In Credit Risk Of Personal Business Loan Of Commercial Bank

Personal business loans is the loan granted by the bank to the borrower for the need of fund in production and operation.With booming private economy and national inclusive finance policy,the financial industry is showing more sympathy to personal business loans in recent years..However small and medium enterprises always have characteristics of small scale,short service life,unsound financial statements and high loan risk.Though enterprises have strong need in financing,banks are always reluctant to lend.At the same time as downward trend in global trade cycle and downward pressure in domestic macro economy,default and bad rate of personal business loans have increased.On one hand,market demand is strong.On the other hand,business environment of small and micro enterprises is deteriorating.Therefore it is key issue for banks to find out how to effectively control risk and build an accurate credit risk measurement model at present.Basing on introduction of concept and theory of credit risk scoring,the thesis will analyze the relevant characteristics of personal business loan risk.With personal business loans data of commercial banks,research in credit risk of personal business loans by logical regression.The empirical results will show data of unpaid repayments,loan interest rate,monthly average balance of assets,business(non-counter),financial management customers and annual income segment which have greater value in analyzing personal business credit risk.The model results can be used as reference for management such as loan evaluation and post-lending evaluation.The final section of thesis will also render advice to promote risk management of commercial banks in personal business loans.