Research On The Impact Of The Relationship Between Banks And Enterprises On The SME Financing

For a long time SME financing costs and credit is one of problems in bank creditresearch areas to explore one of the important issues. Banks will reduce their risk bychoosing the higher than the equilibrium interest rate or improving mortgagecollateral requirements, But this time has increased the cost of financing and is notbeneficial for enterprise to get the credit funds. At present, domestic and foreignresearch on SME financing think that establish a good banks and enterprisesrelationship have a significant role in the promotion of corporate loans.This paper cut election2008-2010listed SMEs bank loan data and build a multiplelinear regression model to confirm the relationship between banks and enterprisesborrowing costs, the availability of loans. Specifically.This paper attempts to answerthe following three aspects of the problem:(1) whether the relationship between banksand enterprises will affect the cost of borrowing.(2)in the case of controlling for othervariables constant,whether the relationship between banks and enterprises will affect theavailability of credit,(3)About SME financing, the big banks or small and medium-sizedbanks hasmore advantages for the development of the relationship between banks andenterprises.To answer these questions, we first establish a multiple linear regressionmodel, econometric analysis of cross-sectional data, and qualitative research on therelationship between banks and enterprises affect the cost of borrowing and loanavailability aspects.Another research focus is to provide research on relationshipbetween banks and enterprises new ideas, including the panel data GMM modelestimation and panel analysis results are compared with the cross-sectional analysis ofthe results to identify the relationship between banks and enterprises a greater impact onSME financing factors and provide the basis for policy recommendations.The results show that the length of the relationship, the development of a numberof relationship banks are the main factors affecting the relationship between banksand enterprises, and to maintain the long bank-enterprise relationship will reduceborrowing costs and improve credit availability. But it should be noted that thedevelopment of a number of relationship banks for corporate finance is unfavorable. The same time, due to the relationship between the depth of metrics is still no uniformstandard, There has a larger measure of deviation,so There are no significant impacton the relationship between banks and enterprises.The study also found that Moresignificant role for corporate finance through the establishment of a goodbank-enterprise relationship in the small and medium enterprises with a relativelydense regions, with other regions, the relationship between banks and enterprises hasno obvious impact on SME financing. At the same time, In SME financing, Small andmedium-sized banks in the development of the relationship between banks andenterprises has more advantages than the big banks,That enterprises with the smalland medium-sized banks to develop the relationship between banks and enterprises,will more favorable.to receive financial support for their own.