Study On The Optimization Of Small And Micro Enterprises Credit Rating Index Of S Bank

SME(small and medium enterprises)is an important part in the progress of China's market economy,which is going deep and develop with high speed.This phenomenon is particularly significant in Zhejiang region,where SME now is the most important force.Compare to SME,small and micro enterprises are smaller,when they are making much and irreplaceable contribution on local economic and employment.However,with the rapid development,small and micro enterprises are facing more dilemma and challenges.Especially in the Financing.Since the majority of small and micro enterprises are private,they barely got no source of equity financing.Mostly,they must rely on commercial bank for financing.But at present,credit delivery in China grows slowly,and the rapid growing non-performing loan,RMB outflow,that significantly restricted the development especially on funds and cash flow of small and micro enterprises.When commercial banks are trying to make deal with small and micro enterprises,they can hardly get the information which is needed to make accurate analysis and judgment,because of the rare public information,basically no corporate governance,imperfect financial system and so on.On this condition,commercial banks prefer to off loans to the large and mediumsized enterprises,because they have a large number of assets and adequate disclosure of information.So the problem of financing difficulties of small and micro enterprise are even more prominent.At present,the domestic credit rating system mainly based on financial information,when it was face to small and micro enterprise,it's hard to work.So the commercial banks,especially local commercial banks,city commercial banks,shall build an credit rating system to improving the credit risk management ability,which adapts to its own market positioning and customer characteristics.Based on the most used categories of credit rating methods,this paper compared the advantages,disadvantages and applicability of these methods,and discussed some problems that exist.In the core part of this paper,we analyzed the characteristics of small and micro enterprises,such as small scale,poor asset quality,low profit margin and weak competitiveness,unsound financial system,opaque information,poor financial situation and weak financing ability.And then,we showed the credit risk rating method and rating indicators of the current form the S bank.This paper puts forward the existing problem in the system,such as: excessive reliance om financial indicators;lack of information sources.And the paper puts forward some vonstructive recommendations,such as: reduce the weight of financial indicators;increase operating cash indicators;external data extraction.Through interviews with small and micro enterprise credit experts,the credit evaluation index framework of small and micro enterprises is sorted out,then the questionnaire survey of more than 100 credit practitioners in small and micro enterprises in the region and industry is used to calculate the weights of each index by using analytic Hierarchy Process(AHP)and professional software,so as to construct an effective index system suitable for S bank.It has certain significance to S Bank with specific regional characteristics and customer structure.