Risk Analysis of Credit Rating Business for Commercial Banks on Small and Medium-sized Enterprise

At present the main source of profits for domestic commercial Banks, is the interest margin of deposits and loans, so if banks want to increase the total profit, it should extend interest margin, and to achieve that it need promote the credit business. However, business development come along with growing credit risk, the more credit risk, the more probability of default, the bigger of credit, the greater of the risk loss. After the financial crisis in 2008, commercial Banks are positively pay attention to and enhance the credit business for SMEs, as company, the risk also will increase. Therefore, strengthen the risk analysis for SMEs´ credit business, find the way to establish effectively risk against system of credit, has become an urgent problem that commercial bank needs to study and solve.