How to give credit to enterprises?

-Three principles of bank retail business development and risk control

Bank retail business is a relatively broad concept, which generally refers to the scattered and sporadic micro-banking products and services provided by banks to residents and private small enterprises. According to the survey of some international banks by the Basel Committee, the retail products of banks at least include credit cards, personal travel loans, personal decoration loans, automobile consumption loans, revolving credit lines, housing mortgage loans, SME loans and other loans. In recent years, with the sustained growth of China's national economy and the improvement of residents' consumption level, the market prospect of retail business has been constantly optimistic, and banks have spared no effort to innovate retail business varieties. In addition, in the short term, the risk of retail business is less than that of corporate business, and the expansion of retail business is helpful to reduce the overall non-performing rate of state-owned commercial banks. Driven by dual factors, the retail business of banks is experiencing a period of ultra-high-speed development, and the topic of how to effectively manage the risks of retail business is also highlighted.

Generally speaking, the risk control of bank retail business should follow three principles:

Principle 1: Differentiated management.

To discuss the risk management of retail business, we should start with the characteristics of retail business. Bank retail business has the characteristics of many varieties, large quantity, standardization and obvious differences. Banks have a wide range of retail products. At present, domestic commercial banks commonly have debit cards, credit cards, mortgage loans, personal investment and commercial loans, personal student loans, personal shop loans and so on. The corporate business of banks is generally aimed at legal persons, while the retail business is more aimed at natural persons, families and small enterprises, so it has the characteristics of small amount of single business, but huge overall quantity; The so-called standardization refers to the standardization system of bank retail products. Taking the housing mortgage loan as an example, there are a series of normative provisions on the loan object, loan amount, loan interest rate, collateral, loan interest-bearing method and accounting treatment. The obvious difference means that retail products (such as credit card overdraft and automobile consumption loan) have great differences in interest rate, term and repayment characteristics.

These characteristics of retail business determine the differentiated thinking of its risk management. The principle of differentiated management is embodied in three aspects. First, due to the variety of retail products, there are obvious differences between them, which determines that the risk management policy of retail business cannot be "one size fits all", and risk management policies must be formulated according to the business characteristics of different products. For example, consumer credit and investment business loans are very different in loan purposes and repayment sources. Consumer credit is generally used for normal consumption, with small amount and short term, and the source of repayment mainly depends on family income; However, the amount of investment and operating loans is large, and the source of repayment mainly depends on investment income, which has great uncertainty. For the former, as long as personal credit is reliable and there is a stable source of income, it should be vigorously developed. For the latter, in addition to considering personal credit, it is also necessary to assess the risks of investment and operation. Second, the effect of risk management is ultimately reflected by the profitability of banks, and a rule recognized by the international banking community is that "80% of profits come from 20% of customers", which is undoubtedly the focus of business competition, and the focus of retail product innovation and risk management is here. Therefore, banks are required to have continuous ability to continuously develop products that meet the needs of high-end customers. Therefore, it is required that the risk management policy of each new product can be put in place in time and reflect the differences with other product risk management policies. Thirdly, the regional imbalance of China's economic development makes the retail business of banks have typical regional differences. The external environment caused by regional differences (such as residents' consumption level, consumption consciousness, consumption habits, etc.). ) The situation faced by bank retail business in different regions is completely different, so the risk management policy should not only be "different for varieties and customers", but also "different for regions".

Principle 2: Quantitative management principle.

At present, the risk management of retail business of domestic commercial banks basically stays in the stage of subjective judgment, far from reaching the level of quantitative management. This is closely related to the imperfect external credit environment, insufficient accumulation of relevant humanistic data, the lag in the construction of internal information systems of banks and the lack of research on risk quantification technology. But in a sense, the risk of retail business is the possible loss brought to the bank by the uncertainty of the borrower's future repayment. It is necessary to avoid losses as much as possible while developing retail business, so that the actual losses fall within the acceptable range of banks. The acceptable range is relative to the whole retail asset portfolio, not to a customer or a product. From the experience of international active banks, it has changed from single risk management to quantifying the risk of the whole retail portfolio of banks, and the quantification tool is VaR(ValueAtRisk).

The introduction of VaR in risk management of retail business represents the development trend of international banking industry and the supervision concept of Basel Committee. If domestic commercial banks want to transition from subjective judgment risk to quantitative portfolio risk, they must start with the data accumulation of retail business approval. The approval of retail business is very different from that of corporate business. Due to the small number of business transactions and the large amount of a single transaction, the process of "due diligence-risk assessment-accountability approval" is often adopted in risk control to ensure the quality of credit granting. However, retail products are large in quantity, small in single sum and standardized, which requires a large number of service personnel, equipment and numerous business outlets. The management cost of individual retail business is higher than that of corporate business. If the company's business approval process is applied to every retail business, it will not only cost a lot of time, but also be very inefficient. In order to improve the speed and efficiency, the retail business often adopts the practice of batch approval. The approved data will provide a direct basis for the quantitative model. With the accumulation of data and the improvement of the model, the risk management of retail business will gradually transition to adjusting the loan conditions and penalties according to the model results to ensure the income level.

Principle 3: the long-term matching principle of risk and return.

The credit risk of retail business has a considerable lag. Taking housing mortgage as an example, the term is generally more than 20 years.