Credit risk assessment and management for small and micro businesses of commercial Banks in the Yangtze River Delta region of Mainland China

Abstract

In recent years, with the acceleration of China's economic development and the increasingly coordinated and reasonable adjustment of industrial structure, small and micro enterprises have been paid more and more attention in the process of promoting national economic development. They have played an increasingly prominent role in promoting economic progress, improving the employment rate of residents and increasing residents' income. Some excellent small and micro enterprises have become the representative growth points and highlights in the new economic development mode. Zhang Mao, director of the State Administration for Industry and commerce, said at the 2017 high level Forum on innovation and development of small and micro enterprises: "by the end of July 2017, there have been 73.281 million enterprises registered in the list of small and micro enterprises in China. According to the results of a sample survey conducted by the National Bureau of statistics, each small enterprise can bring about 7 to 8 people's employment, and an individual industrial and commercial household can bring about 2 to 3 people's employment. In particular, the emergence of a large number of innovative small and micro enterprises has become the power source to promote the development of innovation, and also provides new energy for the structural transformation under the new normal. At present, most of the small and micro enterprises in China are concentrated in the tertiary industry. The proportion of small and micro enterprises engaged in wholesale and retail, residential catering, resident services, repair and other services has reached 76.49%. These enterprises are usually closer to the market and users, face the most intense market competition, and are most sensitive to market changes. It can be said that small and micro enterprises have laid a micro foundation for the development of the whole market economy in some aspects.

Keywords: Credit risk; Assessment, Management

Author
XU LEI