The Analysis Of Regulations On SMEs Fundraising Problem

The fundraising problem has become a major bottleneck that limits the development of small companies and this problem, if not resolved for the long term, will hurt the harmonious and sustainable development of China' s economy.This paper studies fundraising problem of SMEs from a regulation angle. That offers a new angle for the research of SMEs financing difficulty. And the paper tells that the excessive regulation result in SMEs financing difficulty. After analyzing the excessive regulations which exist in commercial bank, the paper discusses how to establish the reasonable regulation system for commercial bank in order to resolve the SMEs financing difficulty and how to keep away from the financial risks after the deregulation.With the exception of improving the making of SMEs and innovating of commercial banks, the paper tells that the fundamental solution to the problem, is moderate deregulation, besides the deregulating of interest rates, loosening the limits of market entry, and so on. For SMEs, more credit is expectable when their lenders are much less fettered.