Research On The Financing Of SMEs From The Perspective Of Commercial Bank

The SMEs are the fundamental power in promoting the economic growth, maintaining market-economy and social stability. They play significant roles in settling employment, increasing household incomes and stabilizing society. After31years of rapid development, SMEs have made tremendous contribution to the GDP, employment and technology innovation. However the financing of corporation have always been the problems for most SMEs. The commercial banks credits are the main source of the financing of SMEs, however due to the lacking of competitiveness and loan guarantees, the support from the commercial banks are far from enough to support the financing of SMEs.Although both the customer number and loan balance have been increasing in most commercial banks recently, the SMEs business make a small proportion of the total commercial banks’profits. In addition to SMEs improving their own competitiveness, the author suggested that government should use monetary policies to encourage the support for SMEs and establish a sound financing pricing system. The commercial banks should also set up specialized credit management system in order to adapt to the characteristics of SMEs. The author also introduced successful experience of Citibank China and Minsheng Bank to set up examples for the improvement of commercial bank financing to SMEs.This paper is consisted of five parts:The Chapter1is the introduction to the problem of "commercial banks to SMEs" financing. The Chapter2demonstrates the status and significance of the SME financing from commercial banks in China. The Chapter3briefly analyzes the causes of the problem of SMEs financing from commercial banks from the perspectives of macro-economic, commercial banks and SMEs themselves. The Chapter4introduced the successful experience of Citibank’s "One-stop Services" and Minsheng’s "Credits Factory Model" to provide a reference for other commercial banks. The Chapter5is the advices that author made for commercial banks to improve the financing status of SMEs.