Research On Credit Risk Management Of Small Enterprises In C Branch Of H Bank

In recent years,suffered from the international trade dispute and COVID-19,China has been under great downward pressure on the property slump.The increasing downward pressure on the economy makes small enterprises with weak risk resistance to face financing difficulties and a serious decline in profit margins.In these difficult circumstances,banks not only need to assume the social responsibility of helping the development of small enterprises,but also need to control the risk losses caused by enterprise default as much as possible.Therefore,by using effective credit risk assessment methods and risk management strategies can helps banks to good operation and orderly management.This thesis takes the small enterprise loan business of the C branch of H bank as the research object and it collects the credit data of 356 small enterprises of the bank from 2018 to 2020 which contains 19 variables in four categories,including the basic information of enterprises,the enterprise financial information,the enterprise financing information and the bank credit strategy.Through several research methods such as expert interviews and Legit Regression,this thesis analyzes the current situation and characteristics of default risk of small enterprises and the regression model are used to analyze the default risk factors of small enterprises.Through the analysis of the data,some variables have a significant on whether the loan defaults,including the business years of the enterprise,the registered capital of the enterprise,the total lending,the loan term,the debt-to-asset ratio,the cash ratio,the special strategies of banks to helping small enterprises.These significant variables should be focused by bank risk managers.Among the relevant variables,the debt-to-asset ratio and the loan term are positively correlated with loan default,while the business years of the enterprise,the registered capital of the enterprise,the cash ratio,the loan term and the special strategies of banks to helping small enterprises are negatively correlated with loan default.Finally,according to the data analysis results,this thesis gives some corresponding suggestions from four aspects: the small enterprises’ stability of management,the small enterprises’ analysis of financial data,the prudence of financing scheme establishment and the bank risk management strategies.Based on the real credit data and risk cases of banks,the thesis can help banks have a certain theoretical and technical reference in risk management of small enterprises.At the same time,the conclusion of this thesis has a certain reference significance for banks to improve their risk management level.