Research On Risk Management Optimization Of Small And Micro-loan Business At M Bank Chongqing Branch

Small and micro enterprises are an important foundation for national economic and social development,an important source of cultivating new economic momentum,and a crucial support for the national economy,playing an important role in maintaining social stability,promoting economic growth,stabilizing and expanding employment,etc.Since the outbreak of COVID-19 in 2020,the real economy in China has been under enormous pressure,deeply affecting global economic development.Small and micro enterprises,as the main force of the national economy,have also encountered many difficulties and challenges in their daily operations and development.In this complex and severe environment,the country has issued a series of policies from the national to local levels,requiring various financial service organizations to enhance their support for small and micro enterprises and individual businesses,through various measures to truly alleviate their difficulties.It can be seen that while commercial banks are implementing national policies,they also need to find a balance point between exploring new profitable areas and risk management of small and micro-loan businesses.This is a severe test for commercial banks and a topic that must be emphasized currently.M Bank started early in the field of professional micro and small enterprise loan business,with a loyal customer base and a relatively large scale.According to internal data from M Bank,the micro and small enterprise loan scale of its Chongqing branch has been growing rapidly in the past three years,but its non-performing loan ratio has been increasing year by year,which seriously affects the healthy and sustainable development of M Bank’s Chongqing branch and its business results.Therefore,after conducting extensive research,this article chooses M Bank’s Chongqing branch as the research subject,and based on the current operating status of the bank,conducts an in-depth study of the risk control of its micro and small enterprise credit.Firstly,this article elaborates on the relevant concepts of micro and small enterprise loans,using comprehensive risk management theory and information asymmetry theory as the theoretical basis of this paper.Secondly,the current status of M Bank’s micro and small enterprise loan business in its Chongqing branch is reviewed and analyzed.After conducting interviews with ten micro and small enterprise loan experts and considering their opinions in conjunction with the current micro and small enterprise loan business process of M Bank’s Chongqing branch,23 risk factors were finally selected.The Analytic Hierarchy Process and the Fuzzy Comprehensive Evaluation Method were used to analyze the weight of these risk factors,identify the problems in the risk control of M Bank’s micro and small enterprise loan business,and analyze the reasons for these problems.Finally,a series of suggestions for improving the work process were proposed based on the analysis of the weight results,which is beneficial for the development of M Bank’s credit business and the avoidance of risk control problems,and it also hopes to provide some help for the healthy and long-term development of M Bank’s credit business in its Chongqing branch.