China Postal Savings Bank Credit Business Development

China Postal Savings Bank is facing many problems in the credit markets, credit marketssuch as financial disintermediation compression, the competitive impact of the credit marketshare of other commercial banks and foreign banks, excess liquidity increased pressure toexpand the credit markets. Capital requirements, the financing of SMES still not beeneffectively resolved, the problem of the difficulty in obtaining loans and loans to farmers ofthe Urban employment abound. Bank excess liquidity and the demand for loans can not beeffective to obtain funds to support the coexistence of a dilemma. This paper argues that thepostal savings bank can effectively alleviate the plight f the development of micro-lending.Micro-lending on the one hand to help commercial banks to develop SME customers andrural markets, as a new profit growth point, on the other handies conductive to resolving thefinancing of SMES and farmers getting loans.March20,2007, set up wholly owned by the China Post Group Corporation, ChinaPostal Savings Bank was established. China Postal Savings Bank to shoulder with the help of"rural" and the burden of helping SMES, because it has36000outlets covering both urbanand rural outlets of the most extensive personal network of financial services savings, most ofthe major commercial banks. However, the China Postal Savings Bank how to use thenetwork edge, the use of national policy, to seize the opportunity to support the "rural", thedevelopment of micro-loan business to be come the top priority of the sound operation of the China Postal Savings Bank.In this paper, the study of the introduction, the theoretical basis, the development statusof China Postal Savings Bank micro credit and the problems plagued China Postal SavingsBank, the micro credit business development key issues: the small loan pricing, guaranteesand risk control to deepen the financial theory and asymmetric information theory as thetheoretical basis, China Postal Savings Bank small loans small business development loanpricing constraints from the level of theory study, the security system and risk control of thethree major bottlenecks, as a basis to develop a corresponding China postal Savings Bank, themicro credit business development strategy, the article came to the conclusion of the smallloan price support loans with higher interest rates, the scientific nature of the security systemas well as risk management and internal control construction development to protect the threemajor conclusions.