A Study On The Financing Problems Of Urban Commercial Banks In Supporting Small And Medium - Sized Enterprises

Small and medium-sized enterprises play a critical role in the fastdevelopment of national economy.However, they do not get enough capitalsupport because of their limited size and high vulnerability to risk fora long time.Currently, financing channels can be classified into internalfinancing, direct financing and indirect financing.Bank loan, as a formof indirect financing, is still the main financing method for small andmedium-sized enterprises.Since its inception,"serve the citizens, servethe medium-and-small-sized enterprises, serve the local economy" has beenthe motto of city commercial banks. City commercial banks have significantadvantage on information retrieval, local government support andoperation timeliness over state owned commercial banks.In the bankingindustry, city commercial banks are more suitable to be the main sourceof financing for those enterprises because of their comparativeadvantages.This article deals with how city banks can give capital supportto small and medium-sized enterprises.This paper starts from a general overview on the current situation,problems and their causes in small and medium-sized enterprises,emphasising their importance in the development of national economy. Wethen deal with the current situation, problems and causes in the capitalsupport given from city commercial banks to those enterprises. Experiencein successful financing are particularised, both domestic and abroad. Atlast, strategic suggestions are given according to actual conditions ofour country.