Analysis Of Sme Indirect Financing

This thesis mainly studies how can we improve the lending problem of the domestic , especially western small and medium size enterprises (SMEs) from the view of indirect lending . It's well concerned and difficult to settle in the near future . The SMEs play important roles in China's economy . However, they are limited by such problems as lending. I hope I can provide some new ways through the study here , while try to find the possibility of promotion of some existing experiences.This thesis is built by three parts . The first part is background introduction , i.e the importance of SMEs in national economy . The second part is description and analysis of SME Lending nowadays and the factors of such problem . The third part the my view depended on the above analysis and studies on the domestic practice . The three parts are a consecutive one.First , this thesis introduces the importance of SMEs in national economy , says they have a bright future .At the same time , however , it points that the SMEs are limited hard ,especially the lending problem . After the analysis of the difficulty of direct lending , this thesis points out that , presently , the major way for the domestic , especially western SMEs is indirect lending , which with some problems . The SMEs and banks have their own views on such problem .The SMEs hold that , the two major modes of lending , mortgage and surety, are difficult in practice . At the same time , the SMEs are uncomfortable for the limited warranty of the root branches of banks with complicated procedures . However , the banks say that , the SMEs have limited credit and imperfect finance regulations . And the banks point out that , it's difficult to enforce mortgage and surety regulations , the environment of financeneeds improvement .I think that , it's difficult to settle the SME lending problem in the near future totally . Nevertheless, it's not to say we can do nothing . With view's change , forming and perfecting the credit system , supporting the medium and small size financing institutes , improving the operation of banks , step by step , we can make the SMEs feel better when they lend . Then I give some points of view depend on the domestic practice .I hope they will be helpful . While major content is concerned with West China , practice from advanced coastal area is highly profiled too. Here I want to make some comparison between them to introduce the advance experience of East to West.China entered WTO during my composition of this thesis . The open-door policy in finance sector of WTO stuns the domestic banks . However , from the view of SME lending , it can force the Chinese banks to pay attention to such problem too .The banks will realize the importance of SME business , and try tosettle such problem actively .And , with the respect to the close relation between surety and indirect lending , I study such concerned issue . And I hope I can provide some new idea for domestic surety organs when estimating the operation of some foreign one .Following is some innovative ideas.As an example , I point out that , the SME business will become new profit source for banks with Chinese capital under new circumstances . Some people gave some suggestions for SME lending with little results .One important reason is that they didn't realize the profit-orientation of banks . Just "Give " without "Gain" can not aspire the Chinese banks.And I discuss such experience as training the good SMEs clients by some banks in advanced area for the guidance of west ones. Then I analyze the case of some foreign surety organ , try to discover its model function fordomestic , especially west ones and some practical experiences. And I provide some other view and suggestions too , such as the mode of combination of indirect and direct lending mechanism for banks , enforcement of the re-lending , re-discount policy of Central Bank , as well as restructuring of Lending Committee , etc .