Credit Strategy Of Commercial Bank For Small And Medium-sized Enterprises

Along with the high developing speed of China market economy, the asset size of commercial banks has been already burst out. Then, most of the banks still focus on their business for big enterprises, which means the credit support for the small and medium-sized enterprises (SMEs) is still not enough. As an important role of our economy, the lacking of credit support has already bottled up the development of these SMEs. Their demand grows rapidly but the supply is seriously behind. Considering the importance for the bank credit strategy and the pressure on continual development requirement, we need to pay more attention on the optimizing the credit service strategy for the SMEs. Based on the author's working experience, and through research on the credit strategy and business model for the commercial banks, this paper is trying to tell the readers that the information asymmetry is the key reason leading to the risk and the benefit unmatched in small business lending, which makes the banks lose their confidence to make a rapid decision, to enlarge their market in this SMEs lending business, meanwhile, a bad influence on the long-term development for the commercial banks has appeared.The writer chooses the information asymmetry as the most important point and exerts the basic economic and the financial theories combined with management experience in a commercial bank. Then the writer takes a commercial bank as a study case to carry out the following three researches:Firstly, this paper defines the status and development trend of our commercial banks. Having analyzed the status, functions development and the demand of the SMEs, this paper clarifies the importance and the necessities to increase the new credit for SMEs and then proposes the problem.Secondly, based on the transaction theory of financing and the dilemma of SMEs credit business, this paper comprehensively analyzes the disadvantages of SMEs' financing and negative impacts on SMEs' credit strategy caused by asymmetric information. Thirdly, by a deep analysis of factors constraining commercial banks service for SMEs credit, this paper proposes a refined strategy accordingly.Finally, this paper conducts a positive research to validate all the points and conclusions proposed in this paper by some commercial bank's SMEs' credit business.