The Research On SMEs’ Relationship Finance Of China’s State-owned Large-scale Commercial Bank

Relationship financing is regarded as an important financing technique which is widely used when the banks carry on small and medium-sized enterprises business. Through the establishment of comprehensive and detailed bank-enterprise relationship, the problem of information asymmetry between the bank and SMEs is resolved and the plight of small and medium-sized enterprises financing is eased.Relational financing technique is being gradually turned into great importance to Japan, the United States and other developed countries, and being applied in financing and has achieved good results. In China, it is just only several years for government and banking institutions to solve the problem, small and medium-sized enterprises have difficulties in financing. So in this article, it will prove that it is a win-win situation when state-owned commercial banks carry out financing on small and medium-sized enterprises through the comparing between foreign commercial banks and state-owned commercial banks and the analysis of their own advantages.On the one hand, because the healthy growth of SMEs is related to the recovery of the national economy and social stability especially in current financial crisis, SMEs in the national economy is playing an increasingly important role. But its development has encountered difficulties in financing, and bank financing is the most important for their financing. As a result, the research on state-owned commercial banks financing is so meaningful.On the other hand, in terms of the "large and deregulating the small" thinking of the customers of their loans for the state-owned large enterprises, state-owned commercial banks share a few percents on market penetration. But since 2006, foreign-funded banks in China have carried on RMB business service, and if the state-owned commercial banks do not make use of their advantages in time to seize the market in SMEs financing, it will be difficult to maintain their market position.At last, in this paper, based on the results of previous studies, through an analysis of the characteristics and the roles of the relationship, as well as the theoretic analysis on relationship financing on state-owned commercial banks, it takes an empirical study on the existence of "relations" in Chinese commercial banks financing process and the distinctness’s of the "relationship" characteristics under different scales of banks based on the bank loans data from "information platform for listed companies in China" project.And then, based on the comparable analysis of foreign-funded banks in China carrying out the relationship financing on SEMs, e.g. American banks and Japanese banks, it puts forward countermeasures and suggestions for state-owned commercial banks carrying on relationship financing.