Research On The Strategy Of Financing Service For The SMEs Of Commercial Banks In China

With the deepening of reform and opening-up in China and rapid economic development, the SMEs as an important part of the national economy is playing an increasingly important role in prospering the economy and increasing employment and promoting innovation. Despite the government payed high attention to the SMEs and introduced a series of policies and regulations to support their development and encouraged commercial banks to provide necessary financing support for them, the majority of the SMEs are still facing difficulties in financing problem.In this paper, the writer takes the financing service for the SMEs of commercial banks in China as the research object and takes the empirical data of financing service for the SMEs as the starting point. It tells us the present situation of financing service for the SMEs in commercial banks. The amount of financing for the SMEs is lower comparing to all loans of commercial banks. Credit policy, credit process, risk management and other factors limit the development of financing service for SMEs in commercial banks. Based on the analysis of empirical data, the writer analysis the causes of the above conditions, using adopt a point, induction and deduction, abstraction and other methods. The first commercial banks didn't pay enough attention to the SMEs;the second credit policy was not benefit for the SMEs;the third credit process did not meet the financing needs of SMEs rightly; the last one is Information, standards and responsibilities were asymmetric, which restricted the development of financing service for the SMEs in commercial banks in China.Achieving a balance between expanding business and preventing credit risks is a key point to the development of financial services for SMEs in commercial banks.Commercial banks can not shirk its social responsibility for strengthening and improving financing services for SMEs, and for supporting the rapid and healthy development of SMEs.It is also an important way to future business expansion and the principal means to improve profitability. Under the policy guidance, commercial banks have to re-examine the development strategy of financing service for SMEs. It is necessary for commercial banks to make property customer orientation, to change financing patterns, to innovate way of financing guarantees and to strengthen risk management. This will result in a new development for both commercial banks and the SMEs.