Research On SME Financing

SMEs in China has been a major driving force of economic development, and the strong impact of the financial crisis, the considerable number of SMEs production, management is difficult to be normal,or even facing bankruptcy. The development of foreign and domestic experience shows that financing problems facing SMEs is the most common and most critical barriers, so who is more conducive to the smooth flow of financing channels for enterprises to conduct timely financing, both to promote the development of SMEs, but also to avoid massive unemployment, is conducive to the re-emergence of enterprises and the country's stability. China's SMEs, due to system, environmental, institutional and other factors, the face more difficulties in financing at a more prominent, from the current situation of the development, financing channels for a single, over-reliance on external financing, and their lack of collateral, the financial system is not perfect, information, and so opaque, making the further development of SMEs encountered a bottleneck, if the long run, bound to China's economic development, social stability, employment and so severely affected.In this background and current status of the case,I want to explore ways to overcome difficulties in financing its traditional theoretical point of view, whether it is still appropriate in the present model of development of SMEs in China? Who can act as small and medium enterprises in the current phase of the savior? How did both for development and reform of financial institutions to support SMEs development and help SMEs themselves? And so on. These questions will be the author of the study and exploration direction.SME financing of this research is mainly based on small and medium banks and large commercial banks, comparative study, in contrast to the concrete before we have to the corresponding theory as support. First, elaborates on the financing of SMEs, the SME is mainly dependent on exogenous debt financing, but the inconsistent supply and demand, the financing gap is relatively large; in direct financing, the stock market listing requirements in the restrictions, many SMEs are can not be direct financing or the issuance of bonds and so on. By understanding the basic financing, China is now run under the financing situation of SMEs, through the findings of the People's Bank pointed out that more labor-intensive small and medium enterprises, non-transparent financial reporting system, immature, financing channels are also relatively simple.SMEs through the financing and status of awareness, the need for further excavation at the reasons, for this reason that foreign scholars have conducted research for decades, the theory is more mature. Abroad, mainly from the perspective of asymmetric information to analyze and expand.Primarily on the basis of domestic scholars and circumstances of specific national conditions and inheritance of foreign research and development put forward based on the following point:"On the banking market structure," "Ownership of discrimination", "discrimination on the enterprise scale," "transaction costs and rent dissipation "theories; Finally, the mathematical model of the credit contract model:max in the relevant constraints, find the optimal solution, then, to meet the incentive compatibility constraint, and finally by the model can be extrapolated, the interest rate limit, the bank monopolies and asymmetric information lead to inefficient credit markets and financial difficulties in financing the key factors.Financing difficulties of SMEs were theoretical reasons for induction, the above analysis, the pattern for the present situation of China's banking industry, and now the main mode of SME financing in external financing is bank loans, so it's necessary to study China's banking industry has done in SME financing. I will be China's banking sector, mainly by large banks and small and medium state-owned banks. The traditional view that small and medium banks in SME lending has an absolute advantage, but through the author's internship at the state-owned banks and the related survey found that the theory has a one-sided. In the definition of small banks and large banks, the China's new commercial banks, national joint-stock commercial banks, city commercial banks (city credit restructuring), rural commercial banks, specialized banks, local, regional, joint-stock banks As a shorter development time, capital, branches, business scope are small, basically small and medium banks, and five state-owned and state-controlled banks is part of a large commercial banks. By reading the literature, researchers at home and abroad, in support of the large banks for financing SMEs in theory, relatively small, Meyer (1998), Goldberg and White (1998), Jayaratne and Wolken (1999).In support of small and medium banks, the more theoretical research, there are "joint supervision" hypothesis, long-term interaction "hypothesis" and "relationship-based financing hypothesis", from different levels of scale and management of the bank angle of the agency problem, never completely contract theory point of view, the physical distance from the bank and transmission of information between the point of impact, etc., from different perspectives to explain and demonstrate a small bank in SME financing advantage.Because of its view of the doubt, the big banks and small banks a more detailed comparison, the first advantage in the information, from ease of access to information on the financial information analysis and processing, bank account manager to obtain this information willingness and motivation of the three angles; Secondly, the product from the system and historical point of view, in certain conditions, specific changes in the environment and the development bank itself will affect the changes in the size of small business loans; From a risk-sharing and management point of view, relatively speaking, small banks than large banks have an advantage; Respectively, shows that an advantage; borrowing costs from the perspective of the last shows that the small banks and large the difference between banks.The traditional theory of manipulation from the front edge of small and medium banks under attack, but the author is not entirely deny the small and medium banks in SME financing role. Through the data and empirical method, large banks and small banks in the comparison between the efficiency of SMEs loans, the paper selected commonly used measure of bank efficiency DEA model is the method that is used to measure the efficiency of the method to be put into output constrained minimization problem solving, the author here an improved method of using multi-stage----super efficiency data envelopment analysis model, will be banking on the overall efficiency of SME financing is divided into two sub-effective efficiency and profit efficiency, the final product, compared with their overall efficiency. The first step, consider the efficiency (productivity), the author selected input indicators for the total assets, number of branches, capital adequacy ratio, short-term loans for the output indicators; the second step, consider the efficiency and profitability, the authors selected input indicators short-term loan and deposit ratio, the bank's pre-tax profit for the output indicators. This time the sample selected for 2007,2008 and 2009, a total of twelve different data listed banks, twelve banks in the sample contains two types of large banks and joint stock banks.12 samples by banks in financing small and medium efficiency, profitability, efficiency and overall efficiency of the comparison, came to the conclusion:large banks and joint-stock banks in terms of efficiency or less, but the difference in profit efficiency, particularly large, these two factors make the financing of SMEs than large banks on the overall efficiency of joint-stock banks. Finally, the author in front on the basis of empirical results, focusing on the big banks made some suggestions, because I do not completely negate the small banks do financing on the contribution of SMEs, but also medium and small banks had outstanding improvements in the external environment, as well as government, security agencies, and so played a role in the stock market. SME finance not only needs the support of external forces, but more self-Enhancing SMEs "internal strength", so SMEs must improve in all areas and promote their own development.This article may be innovations:1. This view is inconsistent with the view of many scholars, breaking the traditional advantages of medium and small banks, and with the support of that theory;2. The paper used two models, contract model and the DEA model, from a different point of view of financing for SMEs;3. This paper focuses on an empirical study, using the DEA model, the selection of indicators and DEA model has been improved, more suitable for the efficiency of bank loans to SMEs measure the efficiency of the final value by way of contrast to illustrate the small and medium enterprises financing, who is more suitable.