Economics at your fingertips  

A Critical Study of Commercial Banks' Credit Risk Assessment and Management for SMEs: The Case of Agricultural Bank of China

Ziyi Li and Xiaosong Zheng
Additional contact information
Ziyi Li: Shanghai University, China
Xiaosong Zheng: Shanghai University, China

Journal of Applied Management and Investments, 2017, vol. 6, issue 2, 106-117

Abstract: In China it is difficult for small and middle-sized enterprises (SMEs) to obtain capital and funds through financing from commercial banks because of imperfect financial environment in China and SMEs’ instability contributing to relatively high risks for credit. However, the development of SMEs plays a pivotal role in the Chinese economy and it is important to study the credit financing problem for SMEs. Based on a detailed and critical case study, this paper studies how Agricultural Bank of China (ABC) deals with SMEs’ financing and explores innovative methods. It provides a good example in credit financing for SMEs among commercial banks in China, including credit rating model, credit policies targeted at SMEs and risk control system. From the ABC’s policies towards SMEs, three main suggestions are provided at the end, including preferential policies of credit financing for SMEs, flexible new risk assessment mechanism and adjustment to local business conditions.

Keywords: SMEs; credit; financing; risk assessment; commercial banks; China (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Applied Management and Investments is currently edited by Anatoliy G. Goncharuk

More articles in Journal of Applied Management and Investments from Department of Business Administration and Corporate Security, International Humanitarian University Contact information at EDIRC.
Bibliographic data for series maintained by Anatoliy G. Goncharuk ().

Page updated 2019-05-13
Handle: RePEc:ods:journl:v:6:y:2017:i:2:p:106-117