Research and Analysis of Small and Micro Credit Business of Guangzhou Rural Commercial Bank

DOI: https://doi.org/10.62517/jbm.202509515

Author(s)

Yabin Shi, Ruitong Gong

Affiliation(s)

Faculty of Economics, Guangzhou College of Commerce, Guangzhou, China

Abstract

In the current context, small and micro enterprises have become an indispensable force in China's economic development, making significant contributions to social and economic progress. Against the backdrop of domestic economic restructuring and industrial upgrading, these enterprises leverage their flexibility and innovation capabilities to play a vital role in promoting employment, stimulating market vitality, and driving economic growth. However, small and micro enterprises face challenges in securing necessary financing due to their inherent weaknesses: limited scale, weak collateral capacity, and lack of credit information. While Guangzhou Rural Commercial Bank struggles to compete with major banks for high-quality large clients, it holds advantages over traditional joint-stock commercial banks through its extensive regional network and deep-rooted presence in Ganzhou City. Therefore, the bank should actively explore innovative microcredit service models to develop small and micro credit business and provide financial services. This paper takes Guangzhou Rural Commercial Bank as a case study to analyze the importance of small and micro enterprises in the economy, Guangzhou Rural Commercial Bank's experiences and challenges in microcredit services, review domestic and international research on microcredit risk management, and introduce the bank's microcredit products, business development status, as well as its risk management organizational structure and procedures. The article identifies issues in Guangzhou Rural Commercial Bank's credit operations and proposes targeted countermeasures. These insights offer valuable references for the financial industry to promote stable market development.

Keywords

Guangzhou Rural Commercial Bank; Small and Micro Enterprises; Credit Business; Risk

References

[1] Lisa Crosato; Josep Domenech; Caterina Liberati. Websites’ data: a new asset for enhancing credit risk modeling. Annals of Operations Research, 2023, 59(3): 624-624. [2] Ni Du; Lim Ming K.; Li XinGuangzhouhi; Qu Yingchi; Yang Mei. Monitoring corporate credit risk with multiple data sources. Industrial Management & Data Systems, 2023, 23(5): 351-352. [3] Dumrose Maurice; Höck André. Corporate Carbon-Risk and Credit-Risk: The Impact of Carbon-Risk Exposure and Management on Credit Spreads in Different Regulatory Environments. Finance Research Letters, 2023, 12(6): 126-127. [4] Asiedu Ennin Peter; AsareEnnin Emmanuel; Shi Wei. Factors that Influence the Demand for Credit of Small and Medium-Sized Enterprises’ (Nkwantanang Municipality) Open Journal of Business and Management, 2022, 33(3): 151-151. [5] Stevenson Matthew; Mues Christophe; Bravo Cristián. The value of text for small business default prediction: A Deep Learning approach. European Journal of Operational Research, 2021, 56(2): 168-168. [6] Mpaata, Eva; Koske, Naomy; Saina, Ernest. Does self-control moderate financial literacy and savings behavior relationship? A case of micro and small enterprise owners. Current Psychology, 2021, 21(3): 63-63. [7] Olobo Maurice; Karyeija Gerald; Sande Protazio; Khoch Steven. Credit Risk Management Practices and Performance of Commercial Banks in South Sudan. Journal of Financial Risk Management, 2021, 39(3): 66-67. [8] Niklas Bussmann; Paolo Giudici; Dimitri Marinelli; Jochen Papenbrock. Explainable Machine Learning in Credit Risk Management. Computational Economics, 2020, 26(8): 59-59. [9] Anjan V. Thakor. Fintech and banking: What do we know? Journal of Financial Intermediation, 2020, 13(8): 157-157. [10] Baselga Pascual Laura; del Orden Olasagasti Olga; Trujillo Ponce Antonio. Toward a More Resilient Financial System: Should Banks Be Diversified? Sustainability, 2019, 36(7): 81-81. [11] Teresa Fernandes; Teresa Pinto. Relationship quality determinants and outcomes in retail banking services: The role of customer experience. Journal of Retailing and Consumer Services, 2019, 29(4): 93-93.