The Strategy Study Of The Development Of SME Credit Business For Small And Medium Sized Commercial Bank In China

Traditional small and medium sized commercial bank in China's market positioning strategy is the follow strategy. The small and medium sized commercial banks offer ignored their differences between them and large state-owned commercial banks in institutional structure, capital size and so on, and blindly imitate the products of the large state-owned commercial banks. They are in the lack of their own operating characteristics. Wrong market positioning lead to small and medium commercial banks and competition-distorting conduct blind disorder, not only resulted in the profitability of small commercial banks and credit standards decline, while also lowering the overall efficiency of the financial system. In this paper, the author theoretical study based on small and medium commercial banks in China by the competitive environment analysis, analyzes the business of small banks and large state commercial banks and foreign banks owned by comparing the strengths and weaknesses, the opportunities and threats, clearly point out that the major competitors of the small and medium sized commercial banks are still state-owned large commercial banks. Small and medium commercial banks should director to develop and implement difference-pursuing strategy in order to establish their own competitive advantage.Meanwhile, the financing problem of SMEs which play an important role in China's economy has not been resolved. This paper analyzes the status of the credit market for SMEs, and analyzes the reason of why is difficult for SMEs to get business loan from small and medium enterprises themselves, commercial banks and policy level. SMEs demand for credit by the market analysis, and whether the business profitable analysis of the problem, I think:SMEs financial services is a very promising market segments and is the key of the medium and small commercial banks to achieve their own development and strengthening. Small and medium sized commercial banks can use their own advantages in this area to challenge with state-owned large commercial banks.After answered whether it is necessary to adopt difference-pursuing strategy and whether the SMEs financial services is profitable. This paper gives several strategy design proposals about how the small and medium sized commercial banks to do financial services business for SMEs. First, the bank-enterprise relations strategy, organized through the creation of market-oriented banking system, focusing on solving the problem of asymmetric information. Second, the customer selection strategy, through industry selection strategy, geographic strategy selection strategy and the design of individual choice arrangements, focusing on solving customer problems screening. Third, risk control strategy, by determining the credit rating system. Fourth, loan pricing strategy, focused on solving the cost-matching problem.