| With the establishment of the market economy system and the rapid growth of the overall national economy, the main structure of the market economy in China has changed tremendously since the start of the reform and openness. One of the examples is that the small and middle-sized economic entity, such as SMEs, widely and deeply involves in various aspects of the market economic activities. The SMEs have become the important driving force to improve the development of the economy in China. It also plays a significant role in some area such as easing the unemployment, creating wealth, increasing taxes, encouraging innovation and so on. Up to the end of2011, the SMEs account for99%of the total number of enterprises. It provides about80%of the job positions. Taxes from the SMEs is about half of the national taxes and the contribution to GDP is over60%. The development of the SMEs which is seen as the important growth engine has unprecedentedly emphasized in China.However, there are still some problems in the development of the SMEs. One of problems is the difficulty of financing. Compared to foreign countries, financing problem is more serious under the special economic environment and monetary system. In2011, private lending crisis happened in Wenzhou which was mainly caused by the rupture of capital chain. Then many SMEs bankrupted because they can not afford the interest. So some bosses just’run away’. All of those things caused more and more public concern about the financing problem.It has been proved by foreign theory that the essential reason why the SMEs would meet the financing problems is the market failure of the monetary trade which caused by the information asymmetry. The SMEs in China were in a passive state in the field of financing. For example, the financing can neither fulfils the demand in the financial target and financing collateral of the large financial institutions, nor affords the high cost of the private lending. So the SMEs in China are in a dilemma of financing field. They crying need some financial institutions to help them to solve the problem of the information asymmetry. And community bank is that kind of institution. It is proved that the community bank is different from other financial institutions. They have significant differences in the operating scale, marketing positioning, organizational form, application of funds. The community bank especially owns some significant advantages in communication with customers, because they can use their experienced skills of relationship lending to collect, transform and use customer information. All of those functions of community bank can effectively solve the information asymmetry on the financing process of SMEs. Community bank has been a very important part in the whole monetary system in foreign countries. It is irreplaceable and its research has already been one of the important financial researches. Although the research related to the community bank in China is still at the starting process, it develops rapidly and there are already some small and middle-sized financial institutions which own the same features as community bank. The community bank is the most active part of the monetary institutional arrangement for the SMEs in the national economy system. It is essential to develop the community bank well so that we can improve China’s market economic system and our financial market order.This paper takes the private lending crisis which happened in Wenzhou last year as the entry point. The structure of this paper is organized as followed. The first part introduces the result of the related theory and research about community bank. The second part analysis the current situation and its reason of financing for SMEs. In the third part, author theoretically and empirically discuss the relationship lending--core of the comparative advantages of community bank. Finally, author analysis the developing experience of America community bank and give some suggestions to improve the development of the China’s community bank. |
PDF Full Text Request