The Study Of The Issue Of The Small And Medium-sized Enterprises Financing Through Banks In China

It's a problem that the Small and Medium-sized Enterprises(SMEs) are difficult to finance all around the world. It also restricts the development of the SMEs in China. According to the status quo of China, the SMEs mainly depended on financing through banks. However, for the internal reasons of the SMEs, the disfigurements of external regulation, the limitation of legal system and banks. Difficulties in finance through banks have been the biggest obstacle for the Small and medium-sized enterprises.Now the global economic crisis which seriously threats the live and development of the SMEs have also affected. A large number of SMEs were bankrupt for the lack of bank credit support. Considering this situation, Prime Minister Wen Jiabao have chaired a State Council House meeting, and research ten measures to promote stable and rapid development of economic by enlarging domestic demands. The tenth of the measures focus on "The increasing financial support to economic growth, the abolishment of commercial restrictions of bank credit, the reasonable expansion of credit scale, the increasing investment in Key projects , agriculture, SMEs and technological transformation, mergers and reorganization of the credit support , strengthen of fostering and consolidating consumer credit growth point. " Then the Banking Regulatory Commission on financial institutions raised two aims : the credit growth rate of SMEs is no less than the full loan growth; the incremental credit of SMEs is no less than last year's, increase the effective delivery of credit to SMEs. In order to help the SMEs financing in such difficult period, more concerns are from central government. Ministries and commissions of central government and the central bank have issued favorable polices to support them. Nevertheless, the issue of financing for the SMEs need to legal tool to be worked out.In this paper, though the analysis of the internal factors of the SMEs, the limitation of legal system and banks, the author holds the point that by means of improving the credit check-up procedures and the system of banks could be helpful for financing through banks of the SMEs. This paper was divided into four chapters: the first chapter is a brief introduction of the SMEs; The second chapter is an analysis of the factors of difficulties of financing through banks for the SMEs, and an advice of improving the credit guarantee system and the system of banks for this problem; The third chapter demonstrated that the absence of professional legislations in China's SMEs by comparing them with the successful experience about the credit guarantee system of other developed countries and areas, and found out the lack of the law especially on the credit check-up procedures, this chapter holds that through the development of specialized credit guarantee institutions on the legal sources of funding, funding mechanism for compensation, and the sharing of risk prevention, security and duration varieties, capital gain in details by set up a law about the credit guarantee system. The fourth chapter introduced respectively the experiences of developed countries and areas in the world about the bank system of the SMEs, and analyzed the limitation of the bank system in China, made a conclusion of that an multi-level bank system will be set up by consummating the commercial banks of state,improving the small and medium-sized banks,establishing the policy banks.