Research On The Loan Risk Management Of Smes In J Rural Commercial Bank

Since the spread of the COVID-19 epidemic,small and micro enterprises in China have faced the situation of sharp decline in orders at home and abroad,resulting in the break of the capital chain and even the closure of the business,which has brought huge losses to the development of small and micro enterprises in China.The General Office of the China Banking and Insurance Regulatory Commission(CBRC)called for strengthening the "six stability" measures to further solve the difficulties and high cost of financing for small and micro enterprises in China while coordinating the prevention and control of the novel coronavirus outbreak and economic and social development.However,due to the small and micro enterprises’ small collateral,weak anti-risk ability and sensitivity to interest rate fluctuations,the small and micro enterprises’ loan credit risk is relatively high,resulting in the phenomenon of commercial banks’ reluctance to lend.Therefore,the study on loan risk management of small and micro enterprises in this paper has important practical significance for alleviating the financing difficulties of small and micro enterprises in China.Based on the theory of information asymmetry and the theory of comprehensive risk management,this paper studies the loan risk management of small and micro enterprises in Rural Commercial Bank Y by using the literature review method,the method of combining theory with practice and the case analysis method,aiming to improve the bank’s credit risk prevention and control level and promote the sustainable development of small and micro enterprise loan business.The research content mainly includes four aspects: first,the bank’s organizational structure,operating status,development of small and micro enterprise loan business,and internal control status of small and micro enterprise loan credit risk were comprehensively described,pointing out that the bank’s internal control effectiveness of small and micro enterprise loan credit risk was insufficient.Secondly,through the five elements of internal control environment,risk identification and assessment,internal control activities,information exchange and feedback,and problem correction and rectification,the Bank analyzed the problems and shortcomings of its internal control over credit risk of small and micro enterprises loans.Thirdly,with the application of comprehensive risk management,internal control,organizational behavior,strategic management and other relevant theories,the Bank proposed targeted improvement strategies for the problems in the internal control of credit risk of small and micro enterprises loans.Finally,in order to ensure the effective implementation of the improvement strategy and promote the healthy development of the bank’s small and micro enterprise loan business,the corresponding safeguard measures were proposed.This paper proposes the following risk improvement strategies for small and micro enterprise loans of Y Rural Commercial Bank: First,in terms of internal control environment,further improve the effectiveness of corporate governance and continuously strengthen the construction of risk culture.Second,in terms of risk identification and assessment,we should improve the accuracy of loan risk identification of small and micro enterprises,improve the credit rating of small and micro enterprises,and improve the means of risk rating of small and micro enterprises.Third,in terms of internal control activities,strict credit access,improve the symmetry of investigation information before the loan,clarify the scope of risk management responsibilities of various functional departments during the loan,and improve the post-loan management ability of small and micro enterprises.Fourth,in terms of supervision,evaluation and correction,we should establish a tracking mechanism for problem rectification and further exert the role of supervision and audit.