Research On The Small And Medium Private Bank

Private capital have gained admittance of most industries in the over 20 years innovation of China, but the banking of China made an exception, the private capital did not get the permission to enter the banking. The regulation place the financing in a dilemma: on the one hand, a great deal of private capital is leaved unused in the state-owner bank, on the other hand, many small and medium enterprises (SME) and private enterprises can't grant a loan from the state-owner bank. It's concluded that the state-owner banking can't adapt the variance of the economic structure. This thesis considered that the small and medium private banking is the measure against the financing dilemma. The relative contents and results are as following:Firstly, I present the research meaning and the research method of this paper, and then define the small and medium private bank.Secondly, base on measurement of the banking performance, the thesis analysisthe meaning of the small and medium private bank--it can improve theperformance of the China banking.Thirdly, the thesis analysis the reason of the financing dilemma: when the state-owner bank provides a loan for the SME and private enterprise, the expectable incoming is lower than the expectable cost, so the dilemma can't be solved by the state-owner banking. Then thesis analysis the characteristic of the small and medium bank, find that the small and medium bank can reduce the cost when it provide loan for the loan for the SME and the private enterprise. So we draw a conclusion that the small and medium bank should mainly serve for the SME and the private enterprise.Fourthly, it discussed three regional economic factors which affect the market of the small and medium private bank: regional industrial structure, regional property structure, regional banking saturation.Fifthly, according to the analysis above, the paper gives some advice in how to develop the small and medium bank in China.