Study On Small And Medium Enterprises Loans In Bank Of China Jilin Branch

After years of development, small and medium enterprises have become animportant force driving China’s economic growth, played a positive role inpromoting economic development and social progress, and also occupied a pivotalposition in the development and construction of the national economy. As of the firsthalf of2011, main business income of small and medium enterprises in Jilin grew by36.4%year-on-year, which accounted for49.4%of GDP and also contributed57%of economic development of Jilin. Small and medium enterprises in Jilin played afundamental role in promoting economic growth and easing the employmentpressure, and became a positive role in maintaining social stability.Today China advocates commercial banks and other financial services toprovide financial services for small and medium enterprises. The emphasis anddevelopment goal of commercial banks is on the development of the small andmedium enterprises. Small and medium enterprises loans have become a new profitgrowth point of the commercial banks. How to expand small and medium enterprisesloans in the fierce competition, form unique loan products, win the market and wincustomers, become the core of the business management of commercial bank tosmall and medium enterprises loans.Bank of China Jilin Branch established the small and medium enterprise loancentre in2010, worked at the mode of "credit factory". After nearly two years ofdevelopment, small and medium enterprises loans of Jilin Branch grew rapidly, loanamount and number of customers achieve strong growth. In the process of development, the original product design, business processes, risk control measures,as well as team building and incentive mechanisms are incompatible with businessdevelopment, needs to be improved. Third is to optimize business processes,Increase the approval authority, and improve processing efficiency.In order to solve the problem, the paper analyzed carefully, gave a strategy toaccelerate the development of small and medium enterprises loans. First is toaccelerate product innovation. Design financial products to adapt to the needs ofsmall and medium enterprises customers. Worked with professional securityagencies, provide security for the small and medium enterprises customers, charge areasonable guarantee fees, reduce financing costs, give full play to the role ofprofessional security agencies, achieve resource sharing and complementaryadvantages. Take inventory of mortgage-backed to those who worked well buttransfer of a large amount of stock and inadequate pledge of assets, solve the smalland medium enterprises’ guarantee difficult, make an inventory of corporate assets,accelerate the corporate cash flow. Around the existing core customers, designsupply chain finance products for receivables financing needs, give an effectivesolution to the problem of financing of small and medium enterprises.Characteristics of small and medium enterprises loans design cycle limit loanproducts. Second is to expand marketing channels. Clear customer targeting, developthe list of target customers depending on Industry and regional characteristics,Implement "List-style marketing”. Play network marketing channel advantages,search for potential customers. Forth is to strengthen risk control through Industryrisk, credit risk, etc. Fifth is to strengthen team building, Incentive structures, protectbusiness development.