Modeling the credit risk for China´s small and medium-sized enterprises

The New Basel accord has highlighted the need for models of the credit risk in portfolios of small and medium-sized enterprises (SMEs) loans. There are really no such models of the risks in SMEs loan even though there is a well established industry-credit scoring-in modeling the risk of company loans. This paper discusses if and how one could use equivalent approaches to building such models in SMEs lending and adopting one regional commercial bank´s data to make Tobit empirical study. The result eDplains our model is a viable method to solve the problem of credit risk of banks with the interest changes from the control price into the market price.