A Study On The Impact Of The Development Of Small And Medium - Sized Banks On The Financing Constraints Of Small And Small Enterprises In China

SME(small and micro enterprises), as the most dynamic part of the real economy, has an important role on China’s economic development, on the contrast, SME has serious financing constraints. Chinese government and relevant departments have taken a series of measures to support the development of SME, but SME still face the financing problem unavoidably, which is caused by the size of them. Therefore, people turn to pay their attention to the innovation of financial institutions and system. In 2012, the State Council put forward to accelerate the development of small financial institutions, make it clear that they should provide services for SME mainly. In 2015, Premier Li visited the small business financial position of ICBC, and said that small businesses not only rely on large banks, but also small banks, which stressed the importance of the development of small and medium financial institutions once again.Division of labor exist in banking, big banks mainly provide service for large enterprises, and small banks regard small businesses as the main service object. Bank credit has an important role in the finance of SME, most SMES’ loans belong to related loans, which is clarified by loan technology. Relationship lending make decision by using the soft information of companies, so it can relieve the problem of financing of SME, from the financing available, the cost and collateral requirements. Small and medium-sized banks have unique advantage on relationship lending, therefore, the State supports the development of small and medium-sized banks. But, that the development of small and medium-sized banks will effectively ease the financing constraints of SME, also need support from empirical data.Firstly, we analyze the advantages of small and medium sized banks on relationship loans from three aspects, as the information collection, transmission and using. Secondly, we analyze that the organization structure of small and medium-sized bank is more conducive to the development of relationship lending by using model. Then combined with the actual facts, we analyze of the important position and potential of the small and medium-sized banks on the small and micro enterprise credit. Then, we choose provincial small and micro industrial enterprises as sample, establish panel data model, analyze if the development of small and medium-sized banks will effectively ease the financing constraints of SME. The results show that:the ability of their finance has significant positive correlation with their mortgage ability, and significant negative correlation with their growth, which means their financing ability depends on their mortgage ability, and those enterprises in the initial stage can get less financing support, SME’ financing constraints exist significantly. The variable coefficient of small and medium-sized banks development is significantly positive, the cross coefficient of mortgage ability and development of small and medium-sized banks is significantly negative, the cross coefficient of growth and development of small and medium-sized banks is significantly positive, which means with the development of small and medium-sized banks, SME can gain more financing support, mortgage requirement from banks is reduced, many banks begin paying attention to their growth, not blindly emphasis on mortgage ability, which eases the financing constraints of SME in a certain extent. Finally, according to the conclusion of this paper, we put forward relevant policy suggestions.