Research On How To Develop Small And Medium-sized Enterprises Credit Business In Bank Of China Xiamen Branch

Being an important force to promote economic development, small and medium-sized enterprises maintained a strong momentum of growth and got lots of supports from government in recent years in Xiamen. Although there is a series of problems of small and medium-sized enterprise, such as not high credit degree, not standard operation and management, not true financial statements, and not sound risk prevention, and banks need to pay a high transaction costs, however, banks can rise the interest rates of supplying financial services for the small and medium-sized enterprise. If the credit business of small and medium-sized enterprises can develop to a certain scale, and the credit risk be well controlled, the benefits will be stable and considerable.Moreover, lots of large enterprises have established a network of funds, a capital intensive management and the direct financing channels, significantly less reliance on bank financing. At the same time, Banks’targets converge, and fierce competition leads to Banks’not strong loan bargaining power and limited profit space, so banks are often in a weak position in negotiation with large corporate clients. Under the pressure of competition, Banks of China has to intensify efforts to the development of small and medium-sized enterprise credit business. In the implement of the "credit factory" mode, the bank of China Xiamen branch met some difficulties and obstacles, and the market share is very small. Therefore, studying how to control credit risk of the small and medium-sized enterprise and how to develop the credit business, is the biggest problem to be solved at present.This article is talking about how to develop small and medium-sized enterprise credit business, according to the concrete practice of the author’s. Firstly, I analysis the characteristics of small and medium-sized enterprises and the development condition in Xiamen, and the competitions and credit moles beyond banks, then analysis the "credit factory" mole and the advantages and the disadvantages of Bank of China in credit business, lastly, I search for the ways to deal with the problems of the credit business of Bank of China. Hoping to provide some reference for the development of small and medium-sized enterprise credit business, I put forward my own opinions and Suggestions.