Credit strategy of micro, small, and medium enterprises with known reputation risk: Evidence from a comprehensive evaluation model

Abstract

With poor financial information transparency, and relatively weak profitability and asset strength stability, Small, medium and micro enterprises started late in China. This makes commercial banks need to bear more risks when providing loans to small, medium and micro enterprises than large enterprises. Big. When commercial banks do not have credit records of certain small, medium and micro enterprises, this will increase the risk that banks need to bear when lending to these small, medium and micro enterprises without credit records, and will also increase the difficulty of credit loan for small, medium and micro enterprises in commercial banks.First of all, we should comprehensively analyze the credit risk of enterprises, establish the TOPSIS comprehensive evaluation model, and then establish the constraint conditions according to the data given by the topic, calculate the interest rate of bank loans to each type of enterprises, so as to determine the bank’s credit strategy. The paper seeks the bank’s credit strategy for these enterprises when the annual total amount of credit is fixed. We use AHP (Analytic Hierarchy Process) to normalize the credit rating, and then get the relevant data ranking of enterprises with credit records through TOPSIS comprehensive evaluation model. Through cluster analysis, we divide them into nine categories, and make the optimal credit strategy from the perspective of interest rate and credit line.