Credit Risk Management For Small And Micro Enterprises Of JN Bank A Branch

In recent years,with the continuous development of China's economy,small and micro enterprises have gradually become the most dynamic and promising businesses,which have contributed a lot to promoting economic growth and solving employment issues.Accordingly they have gotten much support,with the state issued a variety of supportive policies and various financial institutions gradually increased the financing support,and their credit scale rose rapidly.However,they have such defects as weak strength,low risk resistance capacity and untransparent financial information,which have brought larger credit risks to banks for their credit funds,and whose default rates have increased year by year.Therefore,it is particularly important for commercial banks to strengthen their credit risk management to small and micro enterprises,which will not only effectively improve their credit risk management to those enterprises,but also improve their credit asset security,and alleviate the financing difficulties of those enterprises.This thesis collects relevant books,journals,and Internet materials about the basic risk theory to form its theoretical basis.Through questionnaire surveys and discussions with the credit personnel of JN Bank A Branch,the author analyses its credit business model and risk management to small and micro enterprises,and finds that its credit management has following issues:outdated management,slower update of current investigation and approval technology for those enterprises,too single method to identify risks of those enterprises,non-standard pre-loan investigation procedures,excessively subjective mid-loan review,and insuff-icient post-loan inspection,etc.Besides,the author proposes the internal and external causes of the above issues.According to the above issues and their causes,this thesis sorts out the methods of identifying and evaluating risk factors when conferring credit to small and micro enterprises from pre-loan investigation,mid-loan review,and post-loan management and puts forward the corresponding improvement measures for JN Bank A Branch as follows.First,establish a sound pre-loan investigation process,and detail the methods for carefully selecting and investigating customers.Second,establish strict loan review procedures,and propose strict approval measures from information authenticity,financial and business data analysis.Third,implement a comprehensive post-loan tracking inspection.Fourth,establish and improve the credit management system.Build a high-quality credit talent training mechanism and a business withdrawal mechanism,stop the division of tradable and non-tradable shares,and enhance the accountability system.