Research Of The Development Of China’s Community Bank Based On Financial Symbiosis Theory

Community Banks serve for small and medium-sized enterprises in the region, andprovide the impetus for the development of small and medium-sized economic subjects,relying on its own popularity and geopolitical advantage of flexible business. Due to thedifferent levels of development of the market economy, China does not have a realcommunity bank, and related theoretical study stay on the surface. The theoretical study ofcommunity banks does not really dig the role of community banks to small andmedium-sized economic subjects, so as to unequivocally support the establishment anddevelopment of community banks.Based on financial symbiosis theory, this paper analyzes the symbiotic relationship ofcommunity banks and SMEs by using optimal loan model and relationship lending theory.Although China doesn’t have a real community bank, but there are some banks ofcommunity nature, such as city commercial banks, rural financial institutions. So this paperuses the data of banks of community nature instead of Community Bank data to doempirical analysis. The results show that financial symbiosis between the banks ofcommunity nature and SMEs exists, but there are also some defects, such as few symbioticunits, imperfect symbiosis model and other. The establishment of community banks willincrease the amount of symbiotic units, advance symbiosis model, and optimize the currentfinancial symbiosis between the banks of community nature and SMEs. Finally, this papersuggests some policy recommendations for the establishment and development ofcommunity banks from the perspective of the financial symbiosis, for practical reference.