On The Perfection Of Legal System Of Bank Finance For SMES And Innovation

SME("Small-Medium Enterprise") is developing faster and faster, and becomes one of the most important parts of our domestic national economy in the 21 century. But, at the same time, little financial recourse can be used by SME. Difficulty in finance, especially finance through banks has been the biggest obstacle for the development of SME. The finance system has promoted much with the proceeding and effort of the government, financial institutions and theoreticians. But the insufficiencies of legislation still block the SME to obtain financial support through banks and there still exist some gaps for us to cover.The effectivity of"the Property Law"and issuance of other important regulations generate new legal support and possibility for SME finance through banks. On the basis of linking theory with practice, method of comparative analysis and case studying, this paper analyzes the current banks finance system for SME and produces the author's personal view on the consummating and innovating the system.The paper divides into four chapters.In the Chapter I"General Introduction", the author emphasis on the criteria of the SME, which is the primary criteria for banks to produce SME financing products and systems.In the Chapter II"Analysis of Current Scenario and Reasons", the author introduces the current scenario of SME financing through banks, and analyses the various reasons why SME has so many obstacles in banking finance. This comes out partially from external causes, such as legal system and banks, and partially from internal causes of SME.In the Chapter III"Learning from Other Countries and Areas", the author introduces other typical countries and areas. The United States and Japan developed security for SME finance through banks, while the module of the United States is government-dominance and the module of Japan is civilian-dominance. Besides, Taiwan Province has set up different module, such as special SME financial institution.In the Chapter IV"Analysis and Suggestions", firstly, On the basis of the former various criteria, the author creatively raises three basical criteria and three priority criteria. Secondly, the author analyzes the appropriate approaches for SME finance through banks, such as"Floating Charge","Pledge over Receivables"and"Pledge over Intellectual Property","Non-mortgage Loan"and raises suggestions of the consummation and innovation. Thirdly, the author analyzes the relevant guarantee institutions and companies. Fourthly, the author creatively raises and analyzes how banks can be deeply involved in the Venture Capital (VC) of SME.