The Strategies Study Of Developing The Credit Business To Middle And Small Firms For China Construction Bank Jilin Branch

Nowadays, the finance market of our country develops and it connects with the world markets gradually. It is very common that the large corporations issue bonds or stocks which are cheaper than the credit loans interests. So they don't prefer to getting loans from the commercial banks. Now the big banks in our country compete to give loans to the large corporations, but the incomes from the credit loans are lower and lower. At the same time, it is very difficult for the large number of middle and small business to get credit loans from the banks. When the income from the large corporations loans comes down, the banks begin to develop the middle and small business loans. Many banks regard the developing mid and small business loan as their new strategy, so as to the CCB jilin branch. But CCB jilin doesn't develop very well. On the end of june,2007, the credit loans for mid and small business is 5 billions, and the total amount of the credit loans is 39 billions. That means the mid and small loan takes only 13% of the whole credit loan in CCB jilin branch. And it's very necessary for CCB jilin branch to develop the mid and small business loans: 1. the mid and small business become the most active part in the country economy, entering WTO and the developing north-east part of China strategy provide good opportunities for the mid and small business in jilin. 2. CCB jilin branch can get more incomes from mid and small business loans from the large corporations. 3. Developing the mid and small business loans could help CCB jilin branch to find a new way to get more profits.To develop the mid and small business loans, you should analysis the characters of their credit needs. They need small amount each time, the terms are short, they need to get the money quickly, they can pay higher price, and their credit risk level are higher. The characters of the mid and small business are: the country strategies influence them easily, their operation life is short, their operation risk level is higher, and their market risk level is higher.Now, the difficulties for CCB jilin branch to develop the mid and small business loan result in three reasons: 1. the management system and stipulations once prevent the development of the mid and small business credit loans. Yesterday CCB doesn't pay enough attention to the mid and small business. And the client analysis system of CCB jilin branch is facing to the large clients, so it is not very fit to the mid and small business. So many mid and small businesses are rejected by CCB jilin branch. The promotion and punishment system prevent the employees to develop the mid and small business loans. The abilities of innovation are lack, it could not to meet the needs of mid and small business.2. The mid and small business operation status prevent their finance and the development of CCB jilin branch for them. Their sales method is simple, they are lack of innovation abilities.3. From the society angle, converse choice and ethic risk are very common in the mid and small business. The two reasons prevent the banks to give money to the mid and small business. Some mid and small businesses want to get the money from the banks, but they do not want to pay the money back.If CCB jilin branch want to develop the mid and small business loans, it have change some management system and stipulations on its credit business. 1. Take developing mid and small business loans as CCB jilin branch's new operation strategy, and use practical method to choose the aim mid and small clients. 2. reajust the client analysis system and the risk control system, to make systems fit to the reality of the mid and small business. Analysis the risks of the mid and small business client soundly. Rejust the management method for the mid and small business. Set up the credit approvement center for mid and small business to make the approvement goes fast. Rejust the post-credit management stipulations; talk with the leaders of mid and small business often, to know their ideas for their business. Focus on their investments, sales, cash flow. Inspect their accounts, get more information about the mid and small business from the media, internet ect. 3. According to the needs of mid and small business, CCB jilin branch should make the credit process faster, first give authorize sub-branches to operate the business, secondly, develop new financial products for mid and small business to help their daily operation. 4. Set up the promotion system and waive system to the clerks who in charge of the mid and small business loans when the take their duties kindly. After anglicizing the status of CCB jilin branch mid and small business, and the reasons why it's difficult to finance both for the CCB jilin branch and for the mid and small business, the author give some suggestion to develop the mid and small business for CCB jilin branch.