Research On Credit Risk Management Of Small And Micro Enterprises In Commercial Banks

With the development of our country’s economy,small and micro enterprises play an increasingly important role in the national economy.The state are making every endeavour to develop small and micro enterprises,whose credit are also increased by commercial banks.However,the risks inevitable in the operation of small and micro enterprises will also be passed on to commercial banks.Therefore,establishing and improving the credit risk management system for small and micro enterprises is an important process for commercial banks to transform themselves,improve their profitability and achieve sustainable development.It is of great practical significance to study in this field,so as to reduce risks in small and micro enterprises’ credit business.At the meantime,it can also promote the development of commercial banks.This paper begins with a look at two aspects:the credit business of small and micro enterprise and the risk management of commercial banks,by examining the relevant research status at home and abroad.By doing literature research,implementing on-the-spot investigation and conducting case analysis,we has taken both theoretical and practical elements into consideration.From the perspectives of both commercial banks and small and micro enterprises,this paper summarizes and extracts the deep-seated reasons for their potential risks,so as to provide theoretical and policy opinions to solve risk management issues.At the same time,the categories of credit business,the characteristics,process and theoretical foundations of risk management are also discussed sin detailThen this paper takes the L branch of Bank N as an example,and conducts research and analysis in combination with the case to find out various problems existing in the current credit risk management of small and micro enterprises.From the analysis of case 1,it can be seen that the existing problems are that there are many risk factors in small and micro enterprises and the commercial bank’s post-loan management is not strict.From the analysis of case 2,it can be seen that the bank still has many problems,including:information asymmetry between themselves and small and micro enterprises,false information provided by small and micro enterprises,lack of supervision of the credit process,insufficient internal team building of commercial banks Perfect etc.And analyzes the root cause of these problems in detail,that is,commercial banks are short of perfect credit risk management system dealing with small and micro enterprises.Finally,this paper proposes solutions from three aspects:before loan,during loan and after loan.This paper proposes four measures to improve the credit risk management of small and micro enterprises:the first is to improve the investigation system,which is divided into three stages:pre-loan,during the loan,and after the loan;the second is to improve the approval system,using scientific credit evaluation technology and The third is to innovate the management system,to innovate the supervision system,working methods,mortgage system and to create diversified credit products;the fourth is to improve the team building,improve the working ability of employees,strengthen training and implement the reward system.The research results of this paper can serve as a reference for future credit risk management of small and micro enterprises.The problems reflected have certain commonalities,which can help domestic commercial banks control risks,improve their credit risk management level,and promote the sustainable development of the credit business of domestic small and micro enterprises.