Study On Medium And Small Banks' Loan To Medium And Small Enterprises Which In The Circles Of Commerce

Since the reform and opening up, China's gradual. shift from a planned economic model-based development into the market as the primary means of regulating resources, plans supplemented with Chinese characteristics socialist market economy.Among them, small and medium enterprises to become the most active groups, its increasing role to play:to expand employment and the promotion of technological innovation, promoting the overall economic growth, for the preservation and enhancement of our country's economic stability, health and sustainable development of great significance.But now, the development of SMEs in China, are experiencing a shortage of funds bottleneck. Since 2002, the country started to pay attention to this issue since the financing situation of SMEs, although improved, the overall situation may be still at a lower level.China's SMEs, accounting for about 99.8% of total number of enterprises, "15" during the national average annual growth rate of 9.5%, while the scale is about 28% average annual growth of small and medium enterprises.As of the end of 2006, SMEs accounted for GDP,58% of output, providing about 75% of employment opportunities and 68% of exports, completed 65% of China's invention patents and 80% of new product development.However, the credit resources to favor large-scale enterprises particularly severe, a large group of SMEs in the economy received only about 20% of the credit resources, inefficient use of financial resources.With regard to SME financing difficulties, many scholars have done a lot of theory, research, financial institutions have also done a lot of practice and exploration.But the theory is often at the macro level, policy recommendations are given more, how in the field for that specific operation to talk about the more Less; due to China's financial market development is shorter, less developed, but also to avoid excessive risk also contributed to sector on SME lending practices cautious-"credit crunch" phenomenon quite pronounced. This article has been made in the context of existing theory and practical experience, thought that small and medium banks as the main providers of credit products, according to its unique geographical and professional advantages, innovative credit mechanisms, to develop a strong application of financial products, for goods circulation of business clusters to provide comprehensive credit and achieve "wholesale replace retail ", and gradually develop into a point, and in order to ring with chains to small and medium banks to expand credit to the entire scope and scale of small and medium enterprises, and ultimately to form a stable "win-win" situation between medium and small banks and SMEs.