Research On Default Risk Rating System For SLSE Business In GRC Bank

The people's Bank of China,China Banking and Insurance Regulatory Commission,China Securities Regulatory Commission,China Development and Reform Commission and the Ministry of Finance jointly issued the opinions on further deepening the financial services of small and micro enterprises in 2018,and put forward 23 specific measures for short-term precise efforts and long-term governance from the aspects of monetary policy,regulatory assessment,internal management,financial and tax incentives,and business environment optimization.The government further urged and guided financial institutions to increase financial support for small and micro enterprises,so as to ease the difficulty and high cost of financing for small and micro enterprises.As a local financial institution in Guangzhou,GRC bank(Guangzhou rural commercial bank)deeply accepted the arrangement and deployment of the government.It not only vigorously supported and comprehensively arranged,but also urged micro finance to advance in depth.So it innovatively launched the SLSE(sunny loan for small Enterprises)business.However,due to the complex structure of small and micro enterprises in Guangzhou,the default rate of SLSE business was higher,while the business were expanding.and the approval process of SLSE was manual approval,which lacked of quantitative analysis of customer default risk and full dependence on the experience of the approval personnel,and also lacked of scientific.The bank's credit fund lost because of the default of SLSE business.This paper takes the default risk management of the SLSE business of GRC bank as the research subject,and constructs the default risk rating system for the SLSE business.This paper is based on information asymmetry theory and comprehensive risk management theory meanwhile this paper uses logistic regression model.After analyzing the current situation and problems of the default risk management of the SLSE business,thirteen risk factors which have significant impact on the default risk are analyzed and calculated the relevant weights by using the logistic regression model,based on the borrowers' data of the SLSE business.After that,we use ANOVA and descriptive statistics to verify the default risk rating system.Finally,the paper puts forward the implementation scheme and guarantee measures of the default risk rating system for SLSE combining with the risk management work of GRC bank.The results of this paper show that the SLSE business default risk rating system has a good effect on distinguishing high default risk borrowers from low default risk borrowers.The application of the default risk rating system in the SLSE business process can not only scientifically conduct the loan approval but also avoid the moral hazard of the approvers.At the same time,we can dynamically grasp the risk score of borrowers in the post loan link and find out the potential high-risk borrowers in real time.The application of business default risk rating system also improves the level of default risk management of GRC bank.