Xxx Banking Development Of Sme International Trade Finance Business

As the reform and opening to the outside world are carrying furrther forward, small and medium-sized firms in China started to play a significant role in the national enconomy. In 2003, contribution from small and medium-sized enterprises accounted for 55 percent of the national GDP. Of the total exports, small and medium firms accounted for 50 percent. By 2005,the foreign trade of China has reached USD 1422.122 billion surpassing the treshold of USD 1000 billions while 60 percent of the total exports goes to small and medium-sized firms. The international trade is very important for China's national economy,but small and medium-sized firms have encountered many difficulties and experienced lots of setbacks when doing business in the international market despite their large contribution in our country's foreign trade. The biggest obstale is the shortage of capital. Over the past few years, our country has taken many measures to resolve the issue of captial strains faced by small and medium-sized firms and the capital shortage is more or less resolved to a certain extend.However,for most small and medium firms, the dificulty of obtaining financing is still the big factor preventing them from further development. At present, the trade finance, an intermediary business treated as a top prority by all the commerical banks in China, carries few risks and has handsome returns. Additionally, trade finance can bring forward the international settlement business of those firms plus other associated business. However, due to various reasons, XXX Bank still enjoys the concept of "Large enterprises, big industry and large corporations"when promoting international trade finance. These practice are preventing the samll and medium-sized firms from getting financing and enormously obstructing the development of small and medium-sized firms. This business strategy of "big comes first" is not condusive to the healthy devlopment of international trade finance of the XXX bank and it is also against the trends of the development of the national economy.Therefore, in the light of the actual situations concerning the XXX bank's international trade finance, this report will analise in depth the reasons why small and...