The Study Of City Commercial Banks And SMEs'financing

With the improvement of the degree of the China's market-oriented and changes in international trade environment, SMEs are more and more important in improving the degree of market prosperity, increasing employment and creating social wealth. It will play a more important role in China's economic development. However, the development of SMEs constraints from all sides, in which the financing difficulties bear the brunt. As most SMEs in China currently depend on external financing, loans from the bank is a very important way to ease the financing difficulties of SMEs.After ten years of rapid development, city commercial banks have become an important force in China's financial institutions. Since its inception, the city commercial banks are positioned to serve the local economy, SMEs and urban residents. Compared with other commercial banks, it has advantages such as information, process and local government's support in serving the SMEs.In the paper, firstly we start from the financing difficulties, summarize the situation of SMEs'financing and analyze the problem in three aspects of SMEs, banks and the government. Secondly we introduce the development and status of SMEs'financing since the founding of the city commercial banks. City commercial bank has its own advantages in comparing with other commercial banks.The paper also summarizes the experiences from the banks at home and abroad in supporting the SMEs'financing,and put forward some suggestions and strategies in solving the SMEs'financing problems with the help from city commercial banks. And we put forward some views on city commercial banks serving for the SMEs.