Study On Lending Technology Characteristics Of Small Business Loans And Bank Credit Market Boundary

Good development of small enterprises is the protection of the health of our National economy, but its economic importance is a serious asymmetry faced difficulties in financing their problems. Large commercial banks in the micro-credit market not as an initiator makes theorists take thinking of the formation mechanism of different sizes banks credit market. However, in recent years, in the competitive and regulatory environment, the large commercial banks began to tilt to small micro-credit market, especially the Minsheng Bank, innovation in the field of micro finance market recognition. So, what is the reason for the large commercial banks to " ignore "small and micro enterprises? But what is the reason to allow banks to re-emphasis on small and micro enterprises? Although there has numerous research studying on small and micro financing, but the framework of theory analysis is incomplete and does not have a universal basis microscopic defects, and because of data availability reasons, the empirical studies also faced the problem of limited data range and does not have a general regret. Therefore, this article tries to comb through the literature on the theoretical study of the micro financial theory paradigm to summarize, analyze and laid the foundation for research. Meanwhile, this paper draws Hauswald and Marquze (2000)"information distance" model of thinking about information identifying constructed bank preference model, tried to build theoretical framework for banking market structure mismatch theory of micro finance theory and also the corresponding empirical model was tested. And in order to explain the changed behavior of banks in small micro-credit in the competitive and regulatory environment, the paper through research reports and case studies to make a substantive analysis, and finally gives relevant policy recommendations Specifically, the text around three questions:The first question, the explaintion of the small micro-enterprise loans difficult and what is the fundamental problem that economics and micro-finance institutions exist? Mainly through literature review of the value of "relationship" from the micro-finance, micro-finance institutions preferences and competitive advantage in a competitive environment mobile banking market boundaries based on three aspects of research paradigm and the evolution of ideas on micro-finance research and trying to build a more complete analysis of the micro-finance framework. By induction and interpretation of literature, this paper argues:Features of early theoretical studies of micro finance is from "institutional view" perspective of the analysis, assuming that the size of financial institutions is given and to match the characteristics of the " soft" and " hard" information and get the technology advantages.The conclusions of such research is that relationship lending technology dealing with small and micro enterprises is mors effectively but large banks have the advantage of hardware-based lending technology, although the financial sector the competition will affect to some extent the traditional technical advantages of small institutions, but does not make its core competencies disappear. Recent research from the " functional view" perspective, depending on the relationship lending is given to discuss the banks operation efficiency faced with the " soft" and " hard" information. Such studies emphasize that the competition will make the " transactional " and " relational " these two border moving, but the conclusion remains that small banks engage in trade lending are not superior to only engage in relationship lending.The second question, the mechanisms of banks preference and the banks market boundary formation mechanism.Through the model analysis and empirical proof different technical advantages has a very important influence on the bank loan credit preferences and behavior.Its inherent logic and reason is that different technologies will result in bank lending to companies with different information characteristics form a larger difference to assess the accuracy of the project. And this difference is expected to gain influence through different services, thus forming different banks in different markets on their borders competitive advantage. On the border dividing the market, there are technical advantages of transactional lending banks are more inclined to large enterprises of hard information characteristics and distributed transaction-based loans, and small banks with technical advantages of relationship lending tend to micro-enterprise with the characteristics of soft information and grant relationship lending. This competitive advantage within their respective boundaries of the loan market is not only reflected in the expected profit, but also can provide further reflected on financing conditions, that is, the loan and borrower information technology to match the characteristics of the borrowers can improve financing conditions. Based on the above conclusion, the paper agues that "small micro-enterprise information opacity is small and micro enterprises mainly due to financing difficulties" is just the natural characteristics of demand-side financing described. From the supply and demand sides, the bank preferences root mismatch financing needs of small and micro enterprises is the cause of small and micro enterprises financing difficulties. The financing difficulties of small and micro enterprises banking market structure is irrational just one manifestation or result.Meanwhile, for the recent large commercial banks, especially the Minsheng Bank change behavioral preferences in small and micro financing.The paper through research and case analysis argues:Based on the functional concept of perspective, some large commercial banks to take the information collection and Risk Management "two outsourcing" and other practices illustrate its operation mechanism is not compatible for small and micro financing; While,through" soften" and "dual core" operating mechanism,Minsheng Bank just provides a running basis for transaction-based lending, thus increasing its lending the applicability of technologies in small and micro financing. Thus technology is still the main factors bank lending behavior preferences. The mechanism by running targeted improvement and product design can improve the applicability of transactional lending technologies in small and micro financing, leading banking border moving. It needs to be emphasized that, due to transaction-based lending technology "downgrade" improved only lowers the threshold conditions for small and micro enterprise information and, therefore, move the boundary of this business is still limited, small financial institutions’living space will not wave fundamentally.The third question, for the local government and regulatory authorities,what measures should be taken to improve the financing environment for small and micro enterprises? Fundamental problems of small and micro enterprises financing difficulties are the result of the banking system does not match the needs of the market, so our regulators should to improve small micro-enterprise financing measures through optimizing the structure of the banking market structure. First, it need to support the development of small financial institutions. Small financial institutions have a comparative advantage in relationship lending to operate in the financing of small and micro business. Secondly, the weakening of local government the impulse to expand th city banks. City banks blindly toward the goal of bigger and stronger impulses will worsen for local small businesses and local economies financing environment, make the formation of financial siphon phenomenon. City firm to strengthen support for local businesses will improve the financing environment for the region. Finally, it need to address the principles of financial intermediation economics, do not simply through the mandatory requirements of large commercial banks to take the social responsibility of small micro-finance regulatory authorities to perform their duties. Due to the small financing particularity, authorities should be more focused on the actual situation, seeking regulatory measures appropriatly to match the national conditions of China’s small and micro financing to boost the development of small and micro finance.