The Banking Competition In China And The Small And Medium-sized Enterprise Loan Technology

SME have become the main force of the economic development in our country, but always restricts in financing. Bank lending is the major financing channels of SME. Since the1990s, along with our country’s financial reform, state-owned Banks, joint-stock Banks, city commercial bank, citibank, foreign capital, postal savings Banks, rural credit cooperatives, village Banks and other financial institutions improve market competition level gradually. And, as the financial disintermediation, SME has become bank new profit growth point.This article first embarks from the scholars both at home and abroad on research on this question, foreign scholars to the problem of time has not yet been a unified conclusion, in general, there are three kinds of theories:one is Rajan (1992), Petersen and Rajan (1995), Ogura (2007) as a representative of scholars believe that a monopoly of the Banks can choose interest rate level and credit rationing, or form a long-term relationship; Others likes Boot and Thakor (2000), Hauswald and Marquez (2000) argue that competition will make the bank is committed to some on relationship lending for small businesses, Banks can create a competitive advantage, make the bank out from pure price competition; And other scholars after empirically, concluded that the relationship between the banking competition and relationship lending is not as simple linear relationship, but a u-shaped effect (Elsa (2005), and DegryseOngena (2007)). And then Presbitero and Zazzaro (2010), and explained the reasons behind this phenomenon.Due to domestic scholars on the issue of study is less, and stay on the level of theoretical analysis, In China, what will happen with the competition of the banking relationship lending, at present has yet to decide.The author first the theoretical analysis to study the question, we assume that the big Banks and small and medium-sized Banks give full play to their comparative advantage, the Big Banks are good at using the transactional lending to small and medium-sized enterprise credit; Small Banks has advantage of production of "soft information", so has the advantages of relationship lending. Because of big Banks and small and medium-sized Banks are facing the pressure of competition, large Banks and small and medium-sized Banks more on their loan in the technical they are good at. For SME, financing bank have mastered its proprietary, personification features "soft information", if choose transformation financing Banks will face high switching cost, this cost is called relationship rents. According to transaction cost theory, the Banks understand the more proprietary information and personal, enterprise financing bank during the transition, the cost is higher.In addition, the empirical research of this paper selected2004-2010data of shenzhen stock exchange small and medium enterprise board listed companies as the research sample. The empirical results show that (1) our country banking industry market structure and the fact relations between the degree of effect of "inverted U",;(2) enterprises which financial condition is good, but lack of state background are more likely to keep good relationship with Banks;(3) in the result of the regional characteristics of variable, in the less active regions in the development of economy, the relationship between Banks and enterprises have paid more attention to the relationship lending;(4) different sizes of bank had no significant effect on fact relations, which show that the large Banks and small and medium-sized Banks in our country for small and medium-sized enterprise loans didn’t live up to their advantage.In this paper, the research results show that at present our country the compeletition and the relationship between banking "inverted u-shaped effect", and different from foreign result, it mainly due to the following reasons:one is our country urban and rural financial structure and the gap between eastern and western development, lead to banking market structure around the gap is bigger, in addition, the commercial Banks in China used for credit allocation model for a long time; Second, our country is not yet complete legislation of credit and guarantee system, the society is in lack of credit system environment, all kinds of commercial Banks is lack of confidence of grant relationship lending to SME; Moreover, relationship lending should be in the central and western regions of small and medium-sized Banks to make loans to SME the important technology, but in recent years, the impact the competition between Banks, Banks are eager to grab customers resources, caused the Banks no longer expect to obtain relationship lending relationship rents, thus declining use of relationship lending.This article suggests:under the dual financial structure in our country, need to reasonably guide the formation of the banking market structure, improve the efficiency of banking information production. First, we should enrich the small and medium-sized Banks in the market, make the small and medium-sized Banks to play to its advantages of relationship lending; Second, should increase the level of competition in the market of big Banks, through the reform, loans for SME; Third, intensify in the Midwest financial institutions reform, western financial institutions for SME are encouraged to establish close cooperation relations to reduce the gap between east and west, in addition, countries should strengthen of laws and regulations to support for the development of SME, and accelerate the formulation of national credit management, establish social credit system.