Study On Chinese Large-Scale Commercial Banks’ Credit Loan To Small-and-Micro Enterprises

On June18,2011, relevant departments of our country issued 《Small and medium-sized enterprises type standard》 and divided the enterprises into medium, small, micro three types. It infers that our country intend to help small-and-micro enterprises to get financing support specially. Before the issuing of this policy, most of scholars make the research object as small-and-medium enterprises and believe that by building small-and-medium financial institutions the problem of small-and-medium sized enterprises’ financing difficulties. Finally they summed up the theory of "small bank advantage". But there are differences between medium-sized enterprises and small-and-micro sized ones. The real ones who face financing difficulties are small-and-micro sized enterprises. In addition, not only small-and-medium financial institutions can help the enterprises that faced financing problems but also the large-scale-banks. Therefore the study of Chinese large-scale commercial banks’ credit loan to small-and-micro enterprises has both theoretical significance and practical significance.In this article, through analysis and comparison we can find that the reason why the large scale banks don’t help small-and-micro sized enterprises is that this business will cost much and the large sized enterprises can bring enough profits to them. However the environments have changed a lot. Because of the development of financial disintermediation, many large enterprises intend to finance in capital market directly. They will borrow less and less loan from the bank and their profit will reduce. The development of marketization of interest rate will also lead to the reducing of large banks’ profits and the risk that the banks face will be high. So the large scale banks should no longer be confined to the original business and marketing, and they should find new profit growth point. Small-and-micro sized enterprises’bargaining power is low and they have few financing channels. These characteristics should cause the large scaled banks’ concern. The large scaled banks have vantage of scale; technology and credibility which can help them support small-and-micro sized enterprises. But there are also some problems. The traditional credit concept, credit process, banks’ organizational structure and employee’s incentives are all blocks of large-scale commercial banks’ credit loan to small-and-micro enterprises.After making sure of the need, advantage and problems of supporting financing of small-and-micro sized enterprises, this article analyses the case of the "credit factory" model and think that this model is helpful. But there are also some problems when using the "credit factory" model.Finally according to the form analyses this article summed up the policy reco mmendations. For example, the bank should set up the concept of service for small-and-micro enterprises, improve the internal management system that used for small-and-micro enterprise credit financing, optimize the credit business pr ocess, explore the innovation of methods of guarantee, strengthen supervision and control the credit risk assessment and quality, cultivate talents to improve the incentive mechanism.