The Bank Of China Hunan Branch Of The Bank-enterprise Credit Relationship Based On Relational Finance Research

Relationship finance theory is the forefront of theory economists focus on from the last century 90's, which naturally extend and refine the theory of financial intermediation. In the course of the long lasting relationship with firms, banks can get lot of internal information to overcome the informational asymmetry, which grant lender more competitive advantage. However, in our country study on relationship finance theory has just started, but also there have not been specific application in China's commercial banks. This paper attempts to use relationship finance theory to build a new type of bank-enterprise relations.In this paper, I summarize and analyze its existing bank relationship model based on the present bank-firm relationship of Hunan Branch of the Bank of China. The existences of possible questions are revealed, exploring the new bank-firm relationship formation and development mechanism, this paper research on the new bank-firm relations system adaptability, the impact of macroeconomic policies and the relationship development between the bank and enterprises. Bank-firm relations have an important position in modern society, which support China's economic transition. Around the concept of relationship finance theory, innovating mechanisms of bank-firm financing relation, building relational financing mechanisms can promote development of the relationship between bank and firm on health, orderly and low-risk condition. In this paper, I suggest relation-oriented organizational innovation, relational customer manager system, relational intervention in governance and the outside directors or supervisors from lenders, as well as the concrete ideas, recommending policies protection which contribute to the implementation of such a new bank-firm relations based on relationship finance theory.