Research On Credit Risk Management Of Small And Micro Enterprises Of Z Commercial Bank

Small and micro enterprise credit business is a major component of China’s commercial banking business and an important source of income.However,in recent years,with economic fluctuations and downturns,the ability of small and micro enterprises to resist economic downturn risks has been weak,leading to an increase in non-performing loan ratios of commercial banks,posing a challenge to credit risk management of commercial banks.As the mainstream business of most commercial banks,small and micro enterprise credit has the characteristics of short loan cycles,relatively dispersed customers,small amounts,and high liquidity.While commercial banks continue to explore and develop the business model of small and micro enterprise credit,it is particularly important to effectively control risks.Due to the common characteristics of small asset size,weak risk resistance,short life cycle,and high market elimination rate of small and micro enterprises,banks still face significant risks when conducting credit business for small and micro enterprises.In recent years,the control of the COVID-19 has led to the intermittent operation of many small and micro enterprises,business shrinkage,rising costs,and declining benefits,making the trend of the increase in the non-performing loan rate of commercial banks and the increase in the number of credit defaults more obvious.How commercial banks further strengthen the credit risk management ability of small and micro enterprises and avoid the loan risk of small and micro enterprises has become an important research topic.This article first elaborates on the current situation of Z Commercial Bank’s small and micro enterprise credit business and risk management.Based on the results of the survey questionnaire and relevant data analysis,it is found that there are significant hidden dangers and problems in the bank’s small and micro enterprise credit risk management,mainly including a high proportion of non-performing loans and difficulties in disposal,insufficient credit risk warning and control,incomplete and lack of targeted credit risk evaluation system The lack of applicability of standardized risk management models,significant defects and loopholes in online approval models and operational processes,and the main causes of these problems are analyzed.A dynamic evaluation model for credit risk of small and micro enterprises was constructed using the Analytic Hierarchy Process(AHP),emphasizing the need to adjust evaluation parameters in a timely manner with changes in the economic environment and the development trend of the industry in which small and micro enterprises operate.The overall level of credit risk of small and micro enterprises in Z Commercial Bank and individual small and micro enterprises that have received credit were randomly sampled and re evaluated to test the rationality of previous evaluation models and the applicability of the optimized evaluation model,As an indispensable basis for controlling the credit risk of small and micro enterprises,an optimization plan and guarantee measures for Z Commercial Bank’s credit risk management of small and micro enterprises were proposed to further improve Z Commercial Bank’s credit risk management capabilities for small and micro enterprises.