Xx Commercial Bank Financing Of Smes Credit Innovative Research

In our country, small and medium-sized enterprises (SME) are the foundation of microeconomic. And based on this fact, they also become the most important customer to commercial banks. Actually we can say that the business of fund rising for SME is the groundsill of commercial banks. Furthermore, we find that among all types of SME, Circulating SME take the most important role, which also make them one of the most desirable groups of commercial banks. However because of the distinct differences between Circulating SME and large enterprises in size, management and targeted market, which are even quite different from the other types SME, we have to admit that Circulating SME, despite their considerable financial attraction, are the most difficult group in regard to risk control. Experience reveals that commercial banks should not only apply theoretical principles of credit risk control, but also find themselves a proper way to match the characteristics of Circulating SME and the local business environment.In this paper, we discuss the principle position and significant effect of SME in our country economic, based on scientific approaches to define different types of SME. We analyze the business environment and sequent problems that commercial banks have to confront in our country, when dealing with Circulating SME. We analyze the business environment and sequent problems that commercial banks have to confront in our country. By using the asymmetric information rule, we reveal the cause of"loan parsimony"strategy; point out the mistakes in commercial loan system and the necessity of innovations. We try to explore some aspects of SME's fund rising that have already been investigated by our government and commercial banks. we also investigate a set of innovations developed by the XX commercial bank, which related to credit assessment indicator system and loan guarantee policy when dealing with Circulating SME. A strategic analysis report by this bank is also attached to helps us to explain these innovations in detail. After all, by study of this case, we affirm the feasibility of the new mode developed by this bank.In the last part of this paper, we classify and summarize all of those innovations developed by this bank, find out the pre-requested condition of its feasibility, in order to spread the merits to other small and medium-sized joint-stock enterprises all over our country.