Author(s)

Yilin Ou ¹, Baiqian Hou ², Zuyi Hu ¹

Affiliation(s)

¹ Saxo Fintech Business School, University of Sanya, Sanya, China
² School of Humanities and Communication, University of Sanya, Sanya, China

Corresponding Author

Yilin Ou

ABSTRACT

Micro, small and medium-sized enterprises in our country develop rapidly, and the status and function in the national economy and social development are increasing. Micro, small and medium-sized enterprises are in a unique position in economic and social development. Micro, small and medium-sized enterprises are the new force for national economic and social development, an important force for expanding employment, improving people's livelihood, promoting entrepreneurship and innovation, and playing an important role in stabilizing growth, promoting reform, adjusting structure, benefiting people's livelihood and preventing risks. In today's society, financing dilemma has become a bottleneck factor restricting the rapid development of small and medium-sized micro enterprises. For banks, loans to small and medium-sized micro enterprises with small scale and few mortgage assets are sure to bear greater risks, so scientifically formulating credit strategies for small and medium-sized micro enterprises (whether to lend, loan amount, interest rate, term, etc.) is a necessary means to safeguard their own development interests. Therefore, how to make a reasonable risk assessment according to the strength, reputation and other factors of the enterprise has important significance. This paper constructs a credit decision-making model based on commercial banks to evaluate the credit of small and medium-sized enterprises. On this basis, the principal component analysis method, Bayesian decision method and other methods are used to score the enterprise, and the bank's credit risk strategy for micro, small and medium-sized enterprises is obtained. On this basis, the credit risk evaluation model is constructed, so as to better solve the problems of enterprise investment, finance, credit decision-making.

KEYWORDS

Principal component analysis, Bayesian decision making, credit decision making

CITE THIS PAPER

Yilin Ou, Baiqian Hou, Zuyi Hu, Analysis of influencing factors of credit risk and research on credit strategy of smes. Financial Engineering and Risk Management (2024) Vol. 7: 193-200. DOI: http://dx.doi.org/10.23977/ferm.2024.070626.

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