A Study of Chinese Commercial Banks’ Credit Risk Assessmen
A Study of Chinese Commercial Banks’ Credit Risk Assessmen

Summary/Abstract: It has been a long time that Chinese small and medium-sized enterprises (SMEs) have difficulties in dealing with financial problems. As a result of the imperfect financial environment in China, SMEs cannot find the effective way to obtain the funding, especially from Chinese commercial banks. In practice, the existing credit risk assessment and management policies cannot adapt to the requirements of SMEs, which means that developing new mechanisms and management policies is necessary. Based on the previous studies and the economic realities, this paper analyzes the credit status of commercial banks and sorts out the complex background to make a valuable conclusion. In the section of credit risk assessment mechanisms for SMEs, the author compares three classical models and introduces a parameter selection method which measures the financial and non-financial factors together. Besides the theoretical section, a case of Agricultural Bank of China will be studied and the paper will focus on the credit rating system and explore the innovative service for SMEs.

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