Research On Building Community Banks From The Perspective Of Small Business Financing

Small and micro enterprises is an important part of China’s economy, playing ahuge role in China’s economic development and social stability. Especially since thereform and opening up, small and micro enterprises activate the market competition,improve market efficiency, it is an important way to solve the employment problem inChina at this stage, on social stability has an invaluable role. Small and micro enterpriseshave become the development force of national economy and regional economy, that isthe most dynamic economic growth component. However, due to the small and microenterprises and their ability to withstand low risk production operations are notstandardized and the reasons for the entire financial system, small and micro enterprises-straight facing financing difficulties. To this end the government to take a variety ofmeasures, including financial subsidies, loan assistance and venture capital, and so on.But in practice, due to various reasons, these measures are not ideal. At the same time,the state highest political level through the "CPC Central Committee on deepeningreform of the overall number of major issues," the official presentation of "inclusivefinancial development. Encourage financial innovation, abundant levels of financialmarkets and products." And the "new36" that encourage and guide private capital intothe financial services sector. Thus, the establishment of community banks once againraise our voices. The establishment of community banks for small and micro enterpriseswill effectively alleviate the problem of financing.Based on the role of community banks and the advantages especially for small andmicro enterprises to study the advantages of relationship lending, and to analyze thecurrent situation of small and micro enterprises financing, and find a smallmicro-enterprise financing from the policy, financial markets and small and microenterprises themselves difficult to reason, which made under the present conditions ofour country, the establishment of community banks can effectively improve the difficultproblem of small and micro enterprises easily. Next, the symbiotic relationship betweenthe financial community banks and small and micro enterprises in empirical research,empirical results show that lending to small and micro enterprises will continue toenhance the profitability of community banks,which pointed out that community bankshave an incentive to finance for small and micro enterprises. Community Bank has the ability and has the power to provide financing to small and micro enterprises. So, theestablishment of a research community banks have a realistic sense, by restricting theanalysis to the problem of community banks in the establishment and development ofbaking, combined with mature foreign community banking experience, during the buildprocess, we insist on the objective that is "service small micro enterprises, develop thecommunity bank" of building community Banks, and at the same time focusing onsolving the problem of the restriction of reality, so as to serve small micro enterprisefinancing, and develop the community Banks. Through research, the effectiveestablishment of community banks will continue to improve the financing of small andmicro enterprises difficult problem, but for improving the structure of the financialsystem and improve the overall competitiveness of the financial sector are of great help.In this paper, writing mainly in qualitative analysis, supplemented by quantitativeanalysis, while focusing on combining theory and practice. For example, in the study ofthe advantages of community banks, to study and analyze the relationship lending. Inexamining the financial community bank financing symbiotic relationship with small andmicro enterprises, use the principle of financial symbiosis theory. In quantitative analysis,through data collection, collation, in the form of a chart to describe, so that some theorymore intuitive. In the analysis, the combination of theory and practice, for example in thestudy of community banks in the corporate governance structure, combined withpractical Linfen Yaodu rural credit cooperatives, and analyzed.In addition, this article also apply to the empirical analysis of American CommunityBank by collecting relevant data collation, community bank profitability indicators andanalysis of small business loans and business loans to large correlation, leading to theconclusion Community Bank and small micro-enterprise finance financial symbiosiswith nature, willingness to small and micro business loans.In this article, the author’s main job is to relevant research and theory collected,summarize the relevant experience and put forward their views on this basis. Theoreticalperspective in terms of innovation, through a large number of domestic and theoreticalresults on the study of community banks to collect, collate and summarize financialsymbiosis combining theory and empirical evidence findings, combining theory withpractice, come to community banks and small and micro enterprises financing withfinancial symbiosis. In practice guidance for community banks in the country establisheda relatively complete proposals put forward, with great guiding significance for thereality.