Study Of Chinese Commercial Banks' Solutions For Expanding Financing Of Small And Medium Sized Enterprises

In China, SME (small and medium sized enterprises) attach more and more importance to economy growth, however, they have difficulties in financing from banks. Under the external pressure of disintermediation and the entry of foreign-funded banks place much more importance to small and medium sized clients and attempt to solve the problem in financing for them. At the same time, Chinese commercial banks have still encountered many difficulties in tackling the problem. With actual practice of these difficulties, this paper tries to find the solution of how commercial banks expanding SME financing business.This paper uses comparative analysis and empirical analysis, firstly outlines the encountered difficulties of Chinese commercial banks expanding SME financing business; Then contrasts SME financing environment in developed countries and foreign banks expanding SME financing services initiatives; Thirdly, this paper puts forward the measures of how Chinese commercial banks resolve the major difficulties in financing SME, including develop the financing mode which meet the characteristics of SME, help SME to establish financing guarantee system, urge SME to improve their financing conditions, improve and perfect the SME financing environment in line with the government and so on. Lastly, this paper take Industrial Bank Shenzhen branch's specific measures for SME financing as an example, empirical analysis commercial banks'useful attempts in expanding SME financing business. The practices of Industrial Bank have a very practical significance for Chinese commercial banks to resolve the problem of difficulties in SME financing.