Research Into Credit Strategies Towards Small And Medium-sized Enterprises Of Ningbo Branch Of Industrial Bank

As the market economy developing, small and medium-sized enterprises (SMEs) has become one of the most active economic elements in China. Zhejiang province is the pioneer of the development of the private economy, which makes it the representative province for SMEs. In this situation, as the economic center of Ningbo, the local SMEs have turned to the big characteristic and advantage for local economy. However, since the outbreak of the subprime crisis from2008, Chinese small and medium-sized enterprises also have suffered a fatal attack in their development routine. As a developed city in China, Ningbo has influenced much. This article refers to the mature conclusion of domestic and overseas theory research, which analyses and explores Ningbo’s small and medium-sized enterprises’credit financing problems in the Ningbo branches side, not any benefits the process of theory research, but also have a realistic significance on cultivating the new point of profit increase of Ningbo branches.This article follows a research path of "proposing problems-analyzing the present situation-dealing with the problems", which is separated by six chapters in order to research Industrial Bank credit financing strategy. The first chapter is instruction, which simply introduce the research background, present situation, method and the content of this paper. The second chapter is related theory reviews. It presents the theory this paper involves, such as Macmillan defect theory, MM theory and the theory of banks and enterprises’relationship. At the start of chapter three, Ningbo’s present situation of small and medium-sized enterprises with Industrial Bank credit financing. The next parts give the problems of Ningbo branches credit financing for small and medium-sized enterprises. In the fourth chapter, the necessity of perfecting Ningbo branches’credit financing for small and medium-sized enterprises presented. Then, this part gives the credit strategy from four aspects, Business model, the examination and approval process, risk management and assessment and incentive mechanism. The chapter five puts forward implementation security measures for credit financing strategy through three aspects, organizational structure, marketing strategy, credit information system and urging for SMEs. The last part of this article concludes the entire research, gives the study’s academic value and practical value. By analyzing the limitation and shortcomings of this paper, the future research’s direction is given.