The Strategic Analysis Of Providing Loans To Domestic Sme For Foriegn Commercial Banks

Since the private economy has become the major economy in market 30 years ago, the number of small and medium enterprise (SME) has been growing rapidly these years. Contributed by the continuously growing of comprehensive strength, expanding business scope, accumulated net worth, experience and technology, some SMEs have gradually played as leaders in their industry. However, the funding source SMEs required is limited especially from the bank facilities, although the centre government has raised the opinions to support the development of SMEs, and the financial supervision units have issued guidance, advices so as to encourage banks to provide financial support to SMEs. But the actual situation is not optimistic as expected, and the SMEs financing portfolio is still very small.Solving the financing problem of SMEs requires the efforts of all sides. In addition to the government policy's support, to change original financing ideas of banks and improve the management skill of SMEs is also important. Commercial banks, as one of the most important funding suppliers in the market, should generate more financial resource to support SME financing. However, in practice, because of lacking of advanced financing ideas, risk control and assessment system, and products specialized for SMEs, the support of SME financing is still limited. As one of the advanced financial markets in the world, we should learned more from South East Asia and Europe financial market. Right now, several foreign banks had come to Chinese financial market, which most of them had focused on SME market. The writer had worked for both Chinese local and foreign banks for many years. Therefore, this thesis is to provide the Chinese local banks a useful reference and guidance, by conducting research of several foreign banks'business philosophy and financing products.The SME financial market of China is still at the initial stage. We shall not only simply copy the research result of advanced financial markets, but attract great importance to the business philosophy, risk control and assessment as well. It is also required to pay attention to the conditions and policy of China when applying the SMEs financing products and to focus on the risk control and assessment so as to improve the profit level.