Research On Credit Risk Management Of Small And Medium Sized Enterprises In Shenyang Branch Of Z Bank

With the development of society,the Chinese enterprises has gradually expanded,so do the financing demand become stronger.Therefore,commercial Banks began to increase credit extension of enterprises.Commercial banks get many benefits from enterprises.Due to the defects of risk management and the varying economic situation,the credit risk appears.The Shenyang Branch of Z Bank was established in 1995.In recent years,the asset quality has deteriorated year by year,the problem loan ratio and non-performing loan ratio remain high,and the asset quality ranks the bottom three of the joint-stock commercial banks in Liaoning Province.By the end of 2019,the problem loan size of Z Bank Shenyang Branch for SME was 2.931 billion yuan,accounting for 64.39%of all corporate customers’ problem loans,and the problem loan ratio was 23.86%.The amount of non-performing loans was 1.622 billion yuan,accounting for 59.37%of the total amount of non-performing loans for corporate customers.The continuous occurrence of problem loans for small and medium-sized enterprises seriously affects the asset quality,provision,operating income,economic profit and other important indicators of branches.Z bank Shenyang branch of the SME customer default continues rising bad loans,risk continuing outbreak,seriously affect the asset quality of the branch,set aside provisions and so on.Based on the analysis and the credit business of SMEs,this paper summarizes various risks existing in the business process,build the index sy stem of the risk of SMEs credit business,the credit business of the SMEs is divided into the risks of credit investigation,credit risk and the risks in post-loan management,which are subdivided into 12 sub-risks.Three methods are used in this paper to analyze various risks.The risks in the loan operation belong to the "general level",the risks in post-loan management belong to the "lower level",and the risks in the credit business of SMEs is the "upper level".Lastly,according to the evaluation results,for the pre-loan investigation stage,the author proposed to establish the list of SMEs’credit granting materials,standardize data collection and use standards,and set up the actual controller penetration investigation mechanism.In the operation stage of the loan,the proposed Manual on the Development of Approval Standards for SMEs,the centralized procurement system for establishing collateral evaluation companies,and build a recording system for the approval process.During post-loan management,some suggestions are put forward,for example building a fund monitoring system,setting up full-time loan managers,and straightening out the performance evaluation system of customer managers.