The Study Of A Commercial Bank Financing Department's Architecture And Financing Operation To SME

SME is the most vigorous integral part in the modern market economy. In the development of national economy, SME plays an important role in promoting economy development, expanding employment and boosting innovations. And SME is becoming the key element for keeping the sustainable development of China's economy. The quantity of SME keeps 99% of the total of China's enterprises. SME creats 60% of China's GDP, and it contributes 50% of the national tax.75% of the national employment and 69% of the total import and export volume are provided by SMEs. And SMEs' research and development of new products covers 82% of the total. Althougth SME is an important role of national economy development, "the financing difficulty" of SMEs becomes the primary problem that confronts SMEs.Nowadays, the China pays close attention to SMEs' development. The central government issues relative policies and regulations to protect SMEs' interest, and it provides various measures, such as perfect national credit system, broaden financing channel and encouraging financial innovation, to help SMEs' development. Under this conditions, the study of SME Financing Department in commercial has the practical significance in solving SMEs'"financing difficulty".Firstly, SMEs' division standards, SMEs' charactristices and functions in the national economy are stated in this paper. Then problems that occur in SMEs' development are pointed out to lead to the "financing difficulty" is the primary barrier restricting SME's development. For "financing difficulty" is the primary barrier of SME development, it is necessary to analyze financing channels of SME's financing. In this paper, the author analyze the internal financing channel and external financing channel of SME's financing, and get the conclusion that the internal financing channel is insufficient for SME's development and SME need depend on external financing channel to obtain the financing. In external financing channels,. SME cannot easily get entrance into the direct financing market, indirect financing becomes essential option. In indirect financing channels, Bank loan is the principal selection for SME financing, but for reasons from SME itself, it is still difficult for the commercial bank launch loans. The forth chapter of the paper presents readers another point of view of SME's "financing difficulty", and readers can realize that there are problems in commercial bank's system and mechanism restricting the launching of loan for SME. After analyzing bank internal reasons for credit risk, the countermeasures for those reasons are stated in the paper. The installation of SME financing department, which has simplified the loan procedure and enhanced loan efficiency, is a good resolution to control credit risk. In the fifth chapter, the author tell us how to install SME financing department. By PEST analysis, we get the conclusion that the present general environment is good for SME's further development and the SME financing market is huge for SME financing department. By SWOT analysis, the paper indicates that the SME financing department should enhance human resource by training professionalist in credit management, and speed the innovation of financial products to elevate the social reputation and influence of the department. By STP analysis, the paper makes certain that the market position of the department should become the most efficient financing department with best service. And then, SME's division standards, characteristics and loan procedures are indicated in the chapter. The sixth chapter introduces a case of corporation H, and explains the practical application of SME financing department. In this chapter, financial data is analyzed by financial management methods.This not only pays attention to practical analyzing to reasons of SME "financing difficulty", but also focus on exploration of countermeasures to control credit risks. The paper introduces the concept of SME Financing Department, and explains the construction and procedure of the department. This paper presents readers new ideas of solving SME "financing difficulty" and it is a favourable exploration in this field. And its purpose is to offer a few ordinary introductory remarks so that others may obtain their valuable ideas, and I hope it can provide some kind of enlightenment and the model for persons who aims to be engaged in the research of this topic and the practice.