Author(s)

Zhang Ruiyong, Du Ruizhen, Wang Min

Corresponding Author

Wang Min

ABSTRACT

Bank credit behavior plays a key role in the operation and development of enterprises. At present, China's market economic structure presents the characteristics of diversification, the rapid economic development of small and medium-sized enterprises, and gradually become an important part of the development of socialist market economy. However, at present, the main credit objects of Chinese banks are large and medium-sized enterprises, and lack of credit strategy planning experience for small and medium-sized enterprises. In order to adapt to the vigorous development of China’s small and medium-sized enterprises, the establishment of a practical credit evaluation system has become the primary task of China’s banking institutions at all levels. This paper constructs an index system to evaluate the credit risk level of small and medium-sized enterprises from three aspects of enterprise profitability, stability of supply and demand, and enterprise credit. It makes quantitative analysis with entropy method, and then divides the comprehensive score range corresponding to different credit level of enterprises. It draws the interest rate level and customer churn of enterprises with different credit levels by Origin software . It is found that the relationship between them is approximately linear. Based on this, a set of estimated linear regression equations are obtained by linear fitting. Finally, this paper comprehensively expounds the bank’s credit strategy when the total amount of annual credit is fixed.

KEYWORDS

Entropy method, Quantitative analysis, Linear regression