Research On Credit Risk Management Of Small And Micro Enterprises Of JNNS Bank

With the continuous development of the market economy and the continuous improvement of the domestic financial system,small and micro enterprises,as an active new force in the national economy,are promoting China’s economic growth at an alarming rate.According to relevant research,the number of small and micro enterprises in China accounts for 97.5% of the total number of domestic enterprises,and there is even an increasing trend.The sales quota created by small and micro enterprises accounts for more than 60% of the total sales quota of domestic enterprises.However,in the process of their development,small and micro enterprises are affected by the risks from the market,management,ethics and other aspects,which makes them prone to the actual problem of capital shortage,thus hindering their smooth development.Therefore,applying for loans from banks is one of the most important ways for small and micro enterprises to obtain development funds.At present,the approval and issuance of bank loans mainly depend on their credit risk assessment of enterprises.However,due to the lack of domestic credit reporting system,most of the existing credit evaluation systems are aimed at large and medium-sized enterprises,and their applicability to small and micro enterprises is very poor.In addition,small and micro enterprises generally lack a risk early warning mechanism due to their own limitations,and the management of loan flows is also careless and strict,As a result,the banks’ refusal of loan applications to small and micro enterprises is serious,and there are even problems of "reluctance to lend" and "fear of lending".The emergence of these problems has not only hindered the development of many small and micro enterprises,resulting in increased risk of bankruptcy,but also restricted the pace of banks.This also shows,to a large extent,that banks urgently need to establish and improve credit risk assessment,risk prevention and control,and risk aversion mechanisms for small and micro enterprises,so as to effectively control and avoid the emergence of credit risks,so that small and micro enterprises and banks can get their due benefits and maximize their benefits.This paper takes the bank’s internal control as the research starting point,deeply explores the internal control system of JNNS bank,explores its problems in the loan risk management of small and micro enterprises,reflects and analyzes these problems,and puts forward optimization schemes to alleviate the credit mismatch of small and micro enterprises.This study first summarizes the relevant research background,significance,research status at home and abroad,as well as the basic theory of credit risk management,which is the theoretical basis of this study.Secondly,it makes a detailed analysis on the development status of small and micro enterprise loan business of JNNS bank,including the overview of JNNS bank,organizational structure,operation,credit business of small and micro enterprises,and risk management status.It also makes a detailed analysis on a series of problems existing in the loan risk management of small and micro enterprises of JNNS bank and the main causes of these problems,so as to provide a practical basis for the follow-up risk improvement scheme.Finally,in order to optimize the small and micro enterprise credit risk control scheme of JNNS bank,the design ideas and safeguard measures of the scheme are put forward.Through the research,it is found that JNNS bank’s current credit risk assessment system for small and micro enterprises also has a certain effect,but there are still many problems,mainly in the following aspects: low risk identification ability,imperfect risk assessment system,backward risk management technology,imperfect risk response system,insufficient application of risk management effect,etc.There are many reasons for these problems,mainly including external reasons and internal reasons.In view of these problems,this paper puts forward corresponding improvement strategies,that is,JNNS bank can improve its risk identification ability,improve the risk evaluation system,introduce new risk management technologies,improve the risk response system,and pay attention to the application of risk management effects.Based on the analysis of the credit risk problems of small and micro enterprises of JNNS bank and the elaboration of the solutions,the author believes that the basic operation of strengthening the credit risk control of JNNS bank is to optimize and improve the internal control system of the bank,so as to effectively improve the credit quality of small and micro enterprises and achieve a win-win situation between banks and enterprises.