Suggestions on ways to strengthen commercial banks and carry out financial services for small and micro enterprises:
(1) Designing financial products for financing small and micro enterprises. The two biggest problems in financing small and micro enterprises are the lack of fixed assets for mortgages. Secondly, there is no perfect business credit system, leading to the lack of credit assessment. Faced with these high-risk financing groups of small and micro enterprises, commercial banks should conduct in-depth enterprise research first, and analyze the enterprise’s objective and reasonable analysis, and then combine the characteristics of the company’s own business development to meet the funding needs of different small and micro enterprises. Small and micro enterprises in all walks of life have their own unique corporate structure. Commercial banks can tailor a set of solutions for each small and micro enterprise to adapt to their long-term development. Only based on the long-term development of small and micro enterprises can they be designed, targeted and differentiated more distinctive financial services products.
(2) Establish and improve the credit risk management system. For the high-risk problem of small and micro enterprises, the first thing for commercial banks to do is to establish a risk warning mechanism, which will set up the first line of defense for future default risks. The risk warning mechanism helps commercial banks to detect and deal with risk events early, and eliminate high-risk risk factors. Once the business situation changes significantly or faces huge financial problems, the risk warning mechanism can play its biggest role to ensure that the risk of commercial banks is reduced to a lower level. Whether it is for small and micro enterprises or for commercial banks, it is an important means to prevent, control and deal with risk events.
In addition, it is imperative to improve the corporate credit system. Enterprise credit and assessment is an important basis for commercial banks to provide convenient and efficient financial services for small and micro enterprises. Once the credit status and evaluation results of enterprises are lacking, commercial banks must conduct additional research and evaluation. As a result, the cost of commercial banks has increased significantly, which has also hindered the efficiency of financing. Once a well-established corporate credit mechanism is in place, the cost of commercial bank loans will be greatly reduced, and the efficiency and convenience of financial services will be significantly improved. The biggest effect is that the improvement of the credit system will greatly reduce the incidence of default risk events.
(3) Small and micro enterprises strengthen the process of financial standardization and scientific management. Small and micro enterprises must adhere to the long-term development needs of their own enterprises, and must adhere to the direction of corporate financial regulation and transparency. At the same time, the management of enterprises should be more scientific and development. Only the development of business more regulate, the manage will become better and better, the risk of breaking a contract will reduce largely, thus the commercial banks will provide more financial support for themselves.