The Strategies Of Extending Small-sized Enterprises Credit Of Commercial Banks In China

The financing problem has always been a "bottleneck" for the development of all theSmall-sized enterprises. In this paper, the author is studying on the financing issue ofextending Small-sized enterprises credit of commercial banks in China, with theories as theMacmillan Gap, information asymmetry theory, credit rationing theory, bank-enterpriserelationship theory, etc. Applying the method of combination of specification anddemonstration, the author expounds the fundamental theory of financing of Small-sizedenterprises credit of commercial banks; analyses the obstacle and reasons for extendingSmall-sized enterprises credit of commercial banks in China. In this paper, the above obstaclehas been concluded as the small-size, weakness, nonstandard management, unperfect financeand deficiency of mortgage of the enterprises.The reasons for the obstacle of extending Small-sized enterprises credit of commercialbanks in China is due to the instability of operation, information asymmetry, deficiency ofmortgage, and diseconomies of scale. As to the analysis of cases of Minsheng Bank, theauthor has expounded seven guidance strategies for extending Small-sized enterprises creditof commercial banks in China, such as strategy and organizational structure; market segmentsand marketing; product and service; standard module management; the risk management inthe whole process; support of computer system; team foundation; etc.. According to thesuccessful experience of Small-sized enterprises credit-extending of foreign commercialbanks, the author has put forward three pieces of advice, including perfecting the constructionof external environment, support from the supervision institution, and the construction ofbanks own, etc.In this paper, the author has proposed some innovative viewpoints for the extending ofSmall-sized enterprises credit, for example, it is adoptable to transform from service of simpleloan products to the complete ones; from judgments of experts to that of both experts andsystem; from the extensive and similar development to the professional and exclusivedevelopment.