Probe On Situations And Improvements Of The SEMs' Financial Sevices Of The Bank Of Chengdu

With the development of the Chinese opening and reforming policy, the economy system revolutionized deeply. And the local market, which dominating by the large state owned enterprises, now shared with the small and medium sized enterprises. In China, there are 500 million SMEs, accounting for 99.3% of the total. Since the 80s of the 20th century, SMEs created 76% total industrial added value of the country, instituted 60% of the total industrial output, and paid taxes of about 50% of total state tax revenue. Furthermore, they have instituted 76% of the national total town employment position. Thus, they have provided the decisive force to our national economy. In Chengdu, with the development of coordinating urban-rural and the construction of Sichuan and Chongqing economic districts, SMEs will be the core force of the development of Chengdu.However, the difficulty of financing of the SMEs is one of the bottle-neck of the economic development in our country. On one hand, the main source of funds is the bank in our country. Banks are always favour of large enterprises because of their profitable model. So the willing to the SMEs is insufficient. Furthermore, our country's 4 trillion funds are more capitalized to large enterprises and local governments, and commercial banks take a follower strategy, which focuses on small and medium enterprises. Their funds are also inclined to large enterprises, SMEs financing continue to be squeezed. On the other hand, the risk management of the bank and the process of financing are not matched with the feature of the SMEs. So the SMEs can not get financed as quickly as they can.Nevertheless, with the development of foreign banks in China, the competition between banks became more and more fiercely. Banks gradually set their sights on the SMEs. As a local commercial bank, Bank of Chengdu has advantage of customer base of SMEs. The conflicts between bank and SMEs can be resolved by improving internal management, innovating mechanism, and enhancing the level of service for SMEs. Thus all these ways could make SMEs'customers become the core strength of the bank. Additionally, Bank of Chengdu make due contributions to Chengdu-Chongqing Economic Zone development according to supporting the circuit of funds.The paper chooses Bank of Chengdu as research object, and provides suggestions about how to improve the internal management and how to optimize the financial service for the SMEs.