Thinking Of Small And Micro Loans Of Commercial Banks In China

In the early15th century Europe, the microfinance appeared. Such as Italy’s first pawnshop. After hundreds of years, a lot of microfinance appeared in many countries. These are the most primitive model of modern microfinance.In the1970s,.Professor Muhammad Yunus created the first specialized banks to provide loans for the poor-Grameen Bank In Bangladesh, it is a very effective way to solve the poverty problem. Although from the strict sense, the grameen bank is not small micro loans, for the development of the small credit business and the commercial bank small loans, it has far-reaching significance.Among the loan patterns of Grameen bank, The coinsurance mode is frequently used in the small micro loan business of commercial banks. It is due to the success of the Grameen model, Professor Muhammad Yunus won the Nobel Peace Prize in2006.Microfinance business in China began in the1990s. The Grameen Bank model introduced into China in1990.In the psat20years, microfinance has been developing rapidly in our country. Generally speaking, The development of small-micro loans in our country can be divided into four stages:the pilot phase,the infancy phase, the expansion phase and the stage of comprehensive development. In China,the banks dominate the financial system,solving the financing problems of small and micro enterprises should be completed by commercial banks. Small and micro enterprise loan before2008has been in a state of neglected or ignored. In2009, Minsheng Bank take the lead in the development of small and micro loan business.After several years of development,’Shang Dai Tong’ business has achieved prominent results.’According to Minsheng Bank2012semi-annual report, at the end of the reporting period, the small micro-enterprise loans of Minsheng Bank reached250.695billion yuan,the amount of increase is18.2billion yuan and the rate of increase is7.83%over the previous year;the number of small and micro enterprise reached641,300.there are183,300customers more than last year and the rate of increase is nearly40%over the previous year.At the end of2012, small and micro-loan balance of the Minsheng Bank is317billion yuan.There is an increase of84.5billion yuan more than the previous year, representing78.5%of the annual increment in the second half.’With the leading of Minsheng Bank and the supporting of government, small and micro loans business of commercial banks is developing very rapidly.It is very necessary for our economy and commercial banks to develop small and micro loans business.For our economy,it can promote economic growth, increase employment and promote innovation;For Commercial banks themselves,it can increase their profits, optimize the structure, enhance the corporate image. Although the small and micro loans business develops rapidly and has got very significant results, small and micro enterprise financing problem is still not well solved, the financing gap still exists. In order to solve this problem. this article combined with Minsheng Bank’Shang Dai Tong’ business ponders on the many aspects of small and micro loan business of China’s commercial banks,and then put forward some very valuable advices.In order to achieve the proposed research objectives better, this article will be divided into five parts to analyze the above-mentioned problems. In the first section,I explain the background and significance of this article, review the literature of the small and micro loans,and then illustrate this innovation as well as the lack of point. In the second part, this article analyzes the current situation, the necessity and some problems of small and micro loans business.In the third, fourth part, this article analyzes’Shang Dai Tong’ business of the Minsheng Bank exhaustively,including the course of development, product type and plans for the future. Beside, In the final part, Some very useful recommendations that are important for commercial banks to carry out small and micro loan business better has been proposed.The innovation of this article is mainly reflected in the follows:this article combined with the successful experience of’Shang Dai Tong’business at present analyzes current situation and the problems of small and micro loans of commercial banks in our country.It sums up the problems of’shang dai tong’ business and the success reasons of’Shang Dai Tong’. With the success revelation of’Shang Dai Tong’ business, some useful suggestions for China’s commercial banks has been proposed. Due to the author’s capacity constraint, there are still a lot of inadequacies in this article. Small and micro enterprise loans in China develop lately and the mechanism of small and micro loans is not perfect,so it is very difficult for us to get the data of small and micro enterprise.Besides,beacause of the particularity of small and micro enterprise, the truth of the data should be questioned. Considering the lack and the truth of data,this article uses the method that combine theoretical research with the case study of’Shang Dai Tong’. Unfortunately,there is no empirical research that need the support of the data. With mechanisms of the small and micro loans become more perfect, the method of combining theoretical with empirical research will be widely used in the future research. The risk control of small and micro loans will be the focus of future research, especially using the data provided by small and micro enterprises to establish a quantitative model which measure the credit risk of small and micro enterprises will be the focus of future research.