An Analysis Of Banks’Control Policy On SME Loans

The development of SMEs has played an important part in the growth of thenational economy and social stability, but the difficulty in obtaining loans hasrestricted their development. Solving the difficult problem of SMEs’ credit isconducive to not only their development, but also the future development ofcommercial banks. Objectively, SMEs, banks, and governments were responsible forthe loan problem. Especially, government regulations on banks permeated all aspectsof the financial markets, and their impacts on SME loans also couldn’t be ignored.Starting from the policies of government controls on banks, the article analyzedthe impact of the bank property rights, market interest rates, banking access controlpolicies on SMEs’ loans, then demonstrated the future direction of bankingregulations. The controls on banking sector went along with the development of oureconomy, and the paper firstly combinged the path of control policies’ changes;Secondly, it explained how the property rights, interest rates and foreign banks access,the three control policy have impacts on SMEs’ loans, in which the policy changemechanism was analyzed in detail; Finally, this paper combined the theoreticallypolicy analysis with econometric methods to attempt to describe the long-term effectsof regulatory policies on SME loans. Quantitative analysis of bank control on loanswould play a complementary role. Combining the current economic environment withthe theoretical knowledge, the paper proposed countermeasures to alleviate the plightof SME credit and promoted the development of banking sector from the propertyrights, interest rates and foreign banks access.