The Research On The Credit Rationing And Financing Gap Of Small And Medium-Sized Enterprized

The development of China's small and medium-sized enterprises (SMEs) is one of the key elements for china's economy. Unfortunately, SMEs can not obtain adequate financial services. That kind of problem exists world-widely, especially in china. After compare the financial system of China with those of other main Asian countries, this paper argues that since state-owned banks play a monopoly role in China's financial system, it's difficult for China's SMEs to gain the long-term financial support. This article takes dual equilibrium of credit ration as a starting point, and explains why China's SMEs cannot obtain adequate financial services in two aspects. One is the information cost: the marginal cost is higher than that of big enterprises due to its specific information structure. Only sharpening the information-handling capacity and reducing the information cost can change the equilibrium position of credit ration, and then, direct the equilibrium of credit ration to the general equilibrium of welfare. The other is the reform practice: the financial gap of China's SMEs source to the financial support that from state-owned monetary system to state-owned enterprises and the dependence of state-owned enterprise to the support. The key point is, the credit-linked of SMEs are totally different from the credit-linked of state-owned monetary system.This paper attempts to explain the difficulties in providing financial services to China's SMEs by using credit ration theory. Through the analysis of the form of credit ration in the condition of asymmetric information and the form of financing gap of China's SMEs, the paper proposed the measures that can alleviate the credit ration of SMEs, and then can solve the indirect financing gap of China's SMEs.This paper argues that, the difficulty in providing financial services to China's SMEs is a complex question. The ways to overcome that problem are internal financing, direct financing and indirect financing. The paper gives the related policy suggestion in its conclusion.