An Innovative Research On Credit Financing System Of China's Small And Medium-Sized Enterprises

With the continual development of our market economy and the expansion of economic openning-up, and after three decades of struggle, China's Small- and Medium-Sized Enterprises have experienced development from weakness to mightiness, from standard to non-standard and from a slow pace to a quick one. China's SMEs, which have become the major driving force for constructing the harmonious society, play a more and more apparent role in the national economic development. But at present, the biggest obstacle constraining the development of China's SMEs remains to be financing difficulties. Based on this, the dissertation has focused on the difficult problems of credit financing of China's SMEs and carried on comparatively extensive and profound investigations and authentication pointedly, which is of great theoretical value and realistic significance in alleviating the financing difficulties of SMEs.Taking the financing system of credit market of China's SMEs as paramount and drawing the experience of theories of credit ration, financial repression, institutional economics and information economics as well as theoretical analysis of institutional change, the dissertation analyses Commercial Bank's credit behavior and SMEs' credit needs from microscopic point of view by combination of theory and present situation and the use of comparative analysis. Game relation under information asymmetry resulted from institutional differences between banks and enterprises is dwelled on from the middle aspect and institutional arrangement of credit market and difficulties of SMEs' credit needs from the macroscopic visual angle. In addition, we also independently explore in the thesis SME's own disadvantages and deficiency of credit guarantee system from perspective of credit needs' subject and financing environment respectively. Finally, from the angle of institutional creation , we outline a relevant institutional arrangement, aiming to deduce the basic strategy dealing with financing difficulties of SMEs and provide the decision-making department with valuable theoretical basis and Countermeasures. In this paper, by applying the relevant theoretical and empirical analyses, we hold that different systems mainly result in information asymmetry at the credit market. Relations between banking and enterprises at credit market under information asymmetry represent, in effect, institutional game relation, therefore, it needs innovating. Asymmetry between credit incentive and constraint mechanism of credit market is a very important reason for financing difficulties of SMEs, which requires that incentive mechanism at credit market be developed. Consummating credit guarantees can alleviate asymmetrical information between banking and enterprises in an effective way. Deficiency of SMEs' own institutional arrangements is the root cause of their credit financing. Based on this, institutional construction of SMEs should be strengthened. Settling the financing difficulties of SMEs is a systematic project. In the light of that, starting from institutional innovation is a fundamental solution to the problem.