Research On The Financing Mode Of Small And Medium Banks And Small And Medium Enterprises In China

Financing has been restricting the development of small-and-medium-sized enterprises for a long time in China, besides, China's small and medium banks are averse to lend to SMEs. By the data of SMEs' Development and Banks'concentration, this article use binary regression models to find that the relationship between SMEs'development and bank concentration is not very significant. Financing difficulties for small-and-medium-sized enterprises and unwilling to lending for small and medium banks is co-existing, which is mainly due to asymmetric information. To solve the problem, relying on developing small and medium financial institutions is not sufficient, establishing a more transparent information system is available.After analysis of the foreign practices in SME financing problems, the article borrowed the host banking system from Japanese, then applied to small-and-medium-sized enterprises in china and small banks. As a result, the system can simultaneously address all problems. To manage the host banking system effectively, the Government should accelerate the establishment of favorable external credit environment, small banks should Innovate service concept for small-and-medium-sized enterprises, enterprises need to strengthen management. Meanwhile, the relevant laws and regulations also need to improve.