The Development Of Medium And Small Financial Institutions And Financing Of SMEs

SMEs has made great contributions in the economic development of our country, has become an important part of our national economy, but financing problems have constrained the development and growth of SMEs. SMEs in full of its own due to lack of funds, financing channels are single, so most small and medium enterprises get funds through loans from financial institutions to meet capital requirements, The difficult of SME financing can be said to a large extent the difficult of access to credit The SME's own shortcomings and lack of effective security, making the large financial institutions often reluctant to provide loans. Therefore, how to expand the financing channels for small and medium enterprises, and how to build good relations between SMEs and financial institutions, is the urgent need for sustainable development of SMEs and the problem thinking to solve.In this paper, using theoretical analysis and case studies combining quantitative and qualitative analysis as well as a combination of methods, we discuss the development of small and medium financial institutions and SMEs of financing for the system. I mainly from the starting situation and the causes of Small and Medium Enterprises financing, discussed the development of small and medium financial institutions, the importance and special effects for SME financing, causes and problems of financing services for small and medium enterprises, supplemented by Levin commercial bank's case to analyze. Medium and small financial institutions has information and transaction cost advantages in providing financing services to SMEs , but also some disadvantages, limiting its financial support to SMEs.In this paper, I proposed the development of small and medium sized financial institutions to support SME financing. First of all, reasonable arrangements for the financial system to speed up construction of medium and small financial institutions, including give small and medium financial institutions a clear market positioning, reducing the access threshold for financial institutions to establish multi-level and the establishment of deposit insurance system and so on; Second, by creating a favorable policy environment, scientific identified target of small and medium financial institutions to develop and improve the quality of small and medium financial institutions and other measures to promote the development of medium and small financial institutions to better serve SMEs.