High-tech Sub-branches Of Agricultural Bank Of Sme Financing Problems And Countermeasures

With the rapid development of economy since the reform and opening up of China, the small and medium-sized enterprises (SMEs) have become the primary and very active force of China'national economy. However, bottleneck of funding problems are increasingly restrict their development. Our top priority is how to solve the issues such as SMEs'shortage of funds and financial institutions'risk management. Both government departments and financial institutions are very concerned about the funding problems of SMEs. According to a survey, funding constraint is considered to be the biggest obstacle to enterprise development by 70% of the SMEs. Since capital is an indispensible resource for any company to achieve profits, banks, no wonder, try to earn the higher profit with the lower risk, which is well known in the entire world. The differences of development level and distribution among the different SMEs are particularly prominent. Although many countries in recent years adopted policies to improve the financing situation of SMEs, by judging the present situation of SMEs in China, a comparatively perfect and muti-level SMEs funding system has not yet been set up. Neither direct nor indirect funding can solve the issue by the roots.Currently, many experts have studied SMEs'funding problems, and examined the reasons with some proposals put forward. The central theory at present focuses on tracing to the source of the problems and analyzing its improved trend, as well as pointing out the significant role of the commercial banks in solving the problems. By analyzing the existing state of the credit funding in some commercial bank and the pros and cons of all kinds of the funding channels of the SMEs, this paper intends to investigate the problems in the development of SMEs'funding and proposes some suggestions on how to speed up the development of SMEs'funding. The main contribution of this paper is to take the credit operation of SMEs'as an example and make the analysis from the perspective of a specific manager. Results of this study are a direct guidance for both SMEs and the commercial bank.The first chapter introduces the research background, significance of this paper and the current main research on SMEs. The second chapter presents the basic theories and the standards of the SMEs defined by the Bank. The key part of this paper is from chapter three to chapter five in which the target and the existing state and problems of the bank's operating the credit funding are analyzed. Based on the typical feature of the bank in its difficult operating funding, some proposals are put forward to solve the problem. Through the study, it is concluded that if the bank intend to operate its funding successfully the following three aspects should be considered. First, the bank should set up a reasonable target of operating funding in accordance with its own characteristics. Second, the bank should choose to help the potential SMEs to innovate their system and management quality. Finally, reasonable index, assessment and incentive system should be established.