China Development Financial Sme Lending Model Study

Credit is the expectation of performance intention, performance capability and performance consequences of duty-bearers in contractual relationship. In this definition, this paper analyzes the essence of SME financing creditability deficiency ----- the causes of SME financing difficulties: First, before loan the lack of institutions to resolve bank-enterprise information asymmetry leads the banks to lower their expectation of overall SMEs' repayment (performance) capability. Secondly, after loan that the protection mechanism of the relevant rights of banks (creditor) is not perfect enough leads the banks to lower their expectations of SMEs' repayment (performance)intention. This reduced the expected return of banks which lend to SMEs (the expected consequences of performance deteriorate). Then it contributes to banks' "credit grudging" even exiting from SMEs financing market, and SMEs access to financing difficulties. SME financing creditability deficiency has many reasons, the SME itself, banks, credit intermediary service institutions, the building of the legal system, and they jointly contribute to the current situation SME financing creditability deficiencies.Development finance work through the new SME loan model from the four-pronged direction: the government, credit intermediary service institutions, SMEs, small and medium-sized financial institutions, to improve the bank's ability to identify business risk, greatly easing the bank-enterprise information asymmetry before loan; by promoting the government development finance build credit investigation mechanisms and strengthen the legal and policy aspects building. In fact, that directly or indirectly increase the cost of the SME's default, to protect the the relevant interests of banks as creditors. In this paper, using the analytical method of game theory, and so forth, we elaborate how the SME loan model of development finance construct SME's financing creditability.This article thinks that the SME loan model of development finance actually made some useful attempt to build SME's financing creditability and construct SME financing market. It is worthy of in-depth study and active promotion.