Bank Solution For Financing Difficulty Of Small And Medium-size Enterprise

For quite a long time, although small and medium-sized enterprises have played an important role in employment and economic growth in China, the finance resources which they are acquiring are very deficient. The financing difficulty, especially the financing from banks, has become the biggest bottle-neck which severely impedes the further development of the small and medium-size enterprises. In the other hand, with the continuing change of China's finance situation, the management environment of commercial banks in China is also facing unprecedented problems, such as the abandoning of bank as financial media is splitting-flow of the banks' income of financing, the "market interest" is shrinking the profit margin of the banks and the increasing trend of concentration degree of loaning is constantly increasing the credit loan risk of the banks. The appearance of these problems has greatly influenced the future sustainable development of commercial banks. Therefore, strengthening credit loan research on small and medium-size enterprise, quickening the adjustment of loan structure, increasing the proportion of credit loan business of small and medium-size enterprise, are very urgent topics, regardless of the healthy development of bank business, assisting small and medium-size enterprise to survive the current economic crisis, realizing the adjustment of China's economic structure and the transforming of economic growth manner. This article is conducting a study on the credit loan business for small and medium-size enterprise under such circumstances.This article is divided into five parts. The first part is the introduction, introducing the background and the thinking. The second part is the introduction of current financing situation of banks for the small and medium-size enterprise in China and the analysis of the reasons, illustrating the current financing status of the small and medium-size enterprise and the significance of quickening the pace of development, analyzing the internal and external reasons for financing difficulty of the small and medium-size enterprise with the theory of relationship between the bank and the enterprise. In the third part, combining the characteristics of credit loan business for the small and medium-size enterprise, the article indicates the existing problems for the bank in developing the financing business for the small and medium-size enterprise. The fourth part is the focus of this article, summarizing the contents of the previous three parts, the article introduces some necessary measures and recommendations which the Industrial Bank shall adopt to boost the business for the small and medium-size enterprise, including the establishment of the institution, the credit loan products, the credit grading, the approval process, the after-loan management, the disposal of non-performing loan, the performance assessment and the responsibility ascertainment, depicts respectively the difference of current status and relative requirement and points out the thinking of improvement and the detailed operational measures. The fifth part is the conclusion and expectation of the study.The major conclusion of this article is as below: in order to settle the financing difficulty of small and medium-size enterprise, the financial institutions which are mostly composed of the banks, should establish a complete set of management mechanism applicable to the financing for small and medium-size enterprise through the perfection of their own structures and systems. Firstly, to establish devoted institute for small and medium-size enterprise, to set up rational structure and functional department for the small and medium-size enterprise and establish devoted credit loan and marketing group and set up examination and incentive mechanism. Secondly, to perfect the establishment of credit loan system for the small and medium-size enterprise to improve the approval efficiency for the credit authorization to the small and medium-size enterprise and optimize approval process. Thirdly, to establish scientifically the credit and risk assessment system applicable to the small and medium-size enterprise, so as to choose the clients rationally and implement the risky pricing accordingly. Fourthly, to strengthen after-loan management and stipulate explicitly the exempt from punishment of the personnel for fulfilling their duties, to quicken the cancellation after verification for non-performing assets to avoid the worries of the operating personnel. The fifthly and the lastly, to emphasize innovation, leveling the needs of standardization and diversity, and to perfect its lines construction. Only through the joint efforts of the bank, the small and medium-size enterprise and the whole society can the financing difficulty of small and medium-size enterprise be solved gradually.