The Research Of Sme Loan Services Under Financing Constraints

In recent years, the financing difficulties of SMEs which are getting worse yearafter year have been highly concerned by all sectors of society. Especially in the recentthree years from2011, SMEs face a plunge of commercial bank credit and risk ofcapital chain break since a prudent monetary policy has been adopted by thegovernment. At the meantime, operation cost keeps rising and net profit keeps fallingbecause of an increase in the RMB exchange rate, lack of labor force, electricity andother factors of production constraints. Some SMEs have shut down and some ownersof SMEs even run away under this situation in southeast coastal area such as ZhejiangProvince. The National Federation of Industry and Commerce attaches great importance tothis phenomenon so as to lead a series of thematic studies to solve the problem of SMEsfinancing.Financing of SMEs is a worldwide problem. Specific to our country, commercialbank credit, which is the fundamental form of external financing for SMEs, is the key ofsolving the SMEs financing problem. First of all, this paper is based on the inheritanceof predecessors’ studies as well as the reality of our country. A further research about thefactors that may restrict the ability of SMEs financing problem, specific in thecommercial bank credit, has been made through the perspective of small andmedium-sized commercial banks in this paper, besides that, financing channels choiceswhich is target at solving the difficulties of SMEs financing problem have been offeredthrough bank credit perspective in this paper. Particular institutional arrangement shouldbe based on the restrictions of small and medium-sized companies’ credit financing,fundamentally the problem of information asymmetry between commercial banks andcompanies, in order to ease the SMEs’ credit financing difficulties. How to reduce thedegree of information asymmetry, guard against the potential operation risk,management risk, moral hazard in the small and medium-sized commercial banks,increase the credit incentives of small and medium-sized commercial banks for SMEs,is an urgent and realistic problem placed in front of academia.This paper defined the concept of small and medium-sized commercial banks andenterprises firstly, and then put forward a theoretical support of credit services given by small and medium-sized commercial banks, finally, made a conclusion that small andmedium-sized commercial banks is the key to solve the SMEs’ financing problem incurrent market environment, which is determined by the comparative advantage of thesmall and medium-sized commercial bank. Next, this paper analyzed the contributionmade by small and medium-sized commercial banks to SMEs with the data collectedfrom1994to2011on a basis of the restrictions of the SMEs financing ability. Thispaper conduct an in-depth analysis about the game strategy between borrowers andlenders choose with replication dynamic model in game theory, build the Z risk scoringmodel which target at risk prevention in the process of solving the financing problem ofSMEs, summarize advanced credit technology innovation methods in the current market,so as to provide the small and medium-sized commercial banks with the basis for therisk prediction and control. Finally, based on the theoretical and empirical analysis,sound SMEs’ credit system, relaxation of interest rate controls, financial differentiatedregulatory reform and the specific measures of the current financial monopoly system,are considered as effective ways to solve the SMEs financing problem, as well asmaking contribution in promoting a healthy and rapid development of SMEs in China.