An Innovative Study On The Financing Products For SMEs Of Jilin Branch Of Bank Of China

This thesis focuses on the financing needs and difficulties of Small and Medium Enterprises(SMEs) in Jilin Province from the perspective of credit products for SMEs. With the analysis of innovative business development in financing products of Jilin Branch of Bank of China(BC) at this stage compared with the banking systems at home and abroad, the developing direction and practical ideas of the innovative business in financing products of the next stage are formulated. Meanwhile, the research makes a constructive proposal for the smooth development innovative in financing products so that the market competitiveness and the service level will be promoted for the financing products of SMEs.The thesis holds the point that as a gradual process, the development of the innovative business of financing products for SMEs needs to play close attention to the national policies, laws and macroeconomic and other fields. Since various financing products are designed to serve for the SMEs, as long as the principles of financing innovative instruments are obeyed for the specific and related environments of SMEs, the financing instruments can be designed to fit for different SMEs. Finally, the study proposes the innovative solutions and constructive ideas which play a valuable role for the development of innovative business of financing products for SMEs.The thesis consists of five chapters in which fourteen sections are included.The first chapter serves as an introduction which lays out the research background, significance, methodology, focus and the limitation of the thesis.Chapter Two not only focuses on the current financing needs, the characteristics of the needs of SMEs in Jilin province, but also on the innovative theory financing products. Meanwhile, the necessity and feasibility of the innovative financing products for SMEs are covered. It points out that now it is a favorable opportunity for Jilin Branch of BC to provide the all-round support to the development of SMEs and expand the clients for SMEs. The Provincial Bank of China should further change the mode of development to actively meet the development of SMEs in Jilin province from the aspects of credit system, credit products and credit mechanism. The innovative financing products will be an entry point to change the traditional service model so that a comprehensive solution will be achieved.Chapter Three carries out an analysis of the financing products for SMEs. The advanced experience of Bank of Korea, Bank of America and foreign banks in China is selected to be analyzed in order to seek out the advanced financial service experience. It can be concluded that when dealing with the financing supporting for the SMEs, both the extraterritorial foreign banks and the foreign banks in China try to choose low-capital consumption of trade finance business to make profits, and improve the capital efficiency by means of relying on modern technology actively. In this chapter, the present situation of the innovative business needs for SMEs of Jilin Branch of BC is under analysis to seek out the disadvantages. It draws the conclusion that there still exist some problems for the innovative business of financing products in the Jilin Branch, like high cost, shortage of trade financing portfolio and insufficient use of modern technology and so on. Therefore, the coming innovative service of financing products should put the emphasis on the study of the promotion of improved products and the portfolio of products.According to the internal advanced experience of Bank of China, Chapter Four figures out the existing problems in Jilin Branch of BC so that the conclusion is reached that the innovative level of debt financing products needs to be improved and equity financing products need to be enhanced.The related constructive suggestions are proposed for the innovative business of financing product for SMEs in Chapter Five. It discusses the definition of innovative mechanism of financing products and offers the suggestions from the following aspects: especially from strengthening the management mechanism, collecting the innovative mechanisms and processes, the post-evaluating mechanism, the risk controlling mechanisms, and the team-building of innovative culture mechanism And then, the specific innovative ideas and programs are proposed for the actual situation of business development of 2011. It is further pointed out that the innovative financing products must be designed for different period of development of different financial instruments so that the financing program "one family, one policy" can be formulated which can solve effectively the financing difficulties for SMEs and offer a helping hand for the development of SMEs in real sense.The thesis has the faith that the Jilin Branch of BC will be fully capable of providing the main service for SMEs in Jilin Province through continuous efforts and explorations in future and SMEs will become one of the supporting service objects for the future business growth.