Research On Credit Of Small And Medium-sized Enterprises (SME) For Small And Medium-sized Banks In China

SME (Small and Medium-sized enterprises) plays a very important role during the development of economy. However, SME has always been facing financing difficulties. Considering the experiment of developed countries, we can solve the problem by developing small and medium-sized banks (SMB), because SMB has comparative advantages comparing to big-sized banks. The big-sized banks have increased attentions to SME lending business recently. How does SMB compete with the big-size banks? Based on which, this paper researches why SMB should focus on SME business and how to do SME lending business better.The research methods of this paper include theory-practice method, comparative analysis etc. Based on relationship lending theory and optimal credit scale of SME theory, this paper comes up to measures of improving SME credit, including deeply know new financing demands of local SME; the method of credit rating of SME; innovate ways of guarantee to satisfy personalized demands of SME; improve the manger system; strengthen interactive with local costumers and the cooperation with local government.Conclusion:the optimum customers of SMB are local SME, city and village residents. For SMB has comparative advantages, like information cost, flexible operation, supports of the local government etc., SMB should focus on SME and use their comparative advantages.