A Systematic Approach To Credit Supports For Bank Financing Of Small And Medium-sized Enterprises

There is a common agreement in theories, that the dominant finance raising model in China is indirect raising, and such financial mechanism enable financing through bank be the only external capital raising model for small and medium-sized enterprises. In order to break the financial bottleneck for development of small and medium-sized enterprises in China, more concerns are from China central government, and also there is clear strategy in 'the eleventh—five—year plan' to initiatively develop financial support and small loans to small and medium-sized enterprises. Ministries and commissions of central government and the central bank have issued favorable policies to support financing business to small and medium-sized enterprises. Under the governmental guidance and the market demand, commercial banks launched the 'green channel', which are new lending modes such as bank accept. Local governments also pay more attention to the development of small and medium-sized enterprises; they signed cooperation protocols with managed banks to support small and medium-sized enterprises. Those policies did fructify some progress, but in the perspective of bank risk management, characteristics such as low credit willingness and credit capacity are factors that constraints the development of small and medium-sized enterprises financing. The research in this dissertation will lighten the financing dilemma for small and medium-sized enterprises in China, benefits commercial banks not only to extend loan targets, improve performance theoretically, but also sharpen their competitive edge to the challenge of foreign competitors.Related knowledge of management and finance are applied in the dissertation, theoretical analysis, empirical analysis, quantitative analysis and qualitative analysis are mix utilized, based on the bank financing difficulties for small and medium-sized enterprises, studied the primary problems such as credit absence and credit construction, and made some rational suggestions for the development of bank financing for china's small and medium business.The dissertations seek to create at the following aspects:Firstly, according to problems in the bank financing business for small and medium-sized enterprises, the dissertation suggested that it is needed to build a credit supports system which strengthens credit from internal and external coordination, the system couldn't rely on guarantee company,credit-collect system, and should increase small-medium enterprises' credit willingness and credit capacity, such system consists internal credit service system and external credit-increasing system(credit-collect system,guarantee system and compensate system)Secondly, to the difficulties of bank financing for small and medium-sized enterprises, credit risk-diversified model based on "government plus market" was built, the new "government + bank+ guarantee company +enterprise" financing model was demonstrated. Due to the facts that weak credit capacity and limitation of guarantee, small and medium-sized enterprises find difficult to raise fund through financial institution such as banks, the dissertation made suggestions that with application of government's economics coordination ability, combine the favorable policies for small and medium-sized enterprises and the bank financing, to build the "loan pool", establish the appropriate guarantee system and compensate system, found the social risk deliver and diversify mechanism, to solve the problems in small and medium-sized enterprises bank financing.Thirdly, the dissertation figured that governmental credit support to small and medium-sized enterprises may fulfill through direct financial support or built guarantee system and compensate system to strengthen enterprises' credit capacity, and also build the credit-collect system to monitor enterprises' credit accuracy.Fourthly, the credit supports system is not an isolated system, it has to coordinate with social credit system and banks financial services, and purposely to increase default cost, reduce default probability, diversify and deliver banks credit risk.