Bank To Provide Credit Support Research For Smes

In the process of current economic development, the role SME playing for the national economy become increasingly prominent. Despite the great importance both the central and other levels government attach to the development of SME, the financing of SME is still very difficult. Taking into account China's financial market which is not very well-developed and the capital market accounts for only a small proportion of direct financing. Those in turn make it more difficult for SME financing directly through the capital market. This paper elaborates the necessity as well as the feasibility of providing SME with support from bank credit. The method of combining actual investigation and theoretical analysis is applied in this paper. First of all, it investigates and analyzes the demand for funds of SME in Beijing which objectively reflects the current status of financing for SME and its needs. This paper also explores and sums up the principle of commercial banks as for providing credit support for SME so as to increase credit support within a certain range of risk tolerance and to solve the financing difficulties of SME from the aspect of commercial banks. Through researching, it can be concluded that: SME financing must be supported by the government, the banking supervision departments as well as by specific credit policies in support of SME. Banks should change the existing credit approval and management pattern, therefore, SME can finance funds from banks smoothly to meet the needs of development and then further promote its fast and good development. It is also very necessary for banks to increase credit support for SME, which eventually will reach a "win-win" situation so as to create a harmonious socialist society.