Research On Credit Channel Development And Product Innovation Of Small And Medium - Sized Enterprises In State - Owned Banks

The difficult financing of the SME is the common problem worldwide. As one of the main channel of Chinese financial market, the state-owned bank’s practice of broadening the SME facility channel as well as the product’s innovation, will impose the great significance upon the topic problem.The thesis undertakes the practical and theoretical analysis upon the condition and reason of the difficult financing of the SME. With connection to the various measure of different banks upon the said problem, it summarize the six advantage of the state-owned banks upon the area of financing power, brand and reputation, government and customer resource, management and talented people, branch number as well as innovation practice. On the above basis, with reference to broadening the SME facility channel as well as the product’s innovation, the state-owned banks should give a full play to its advantage and overcome its disadvantage, taking the steps of standardization, specialization and diversification, it means:on the basis of its specific advantage of branch number, the banks should rely on the government and customer resource, develop the supply chain financing for the purpose of broadening the traditional channel. Meanwhile, the banks should strengthen the research upon the professional market which posses’ vast common customer, as well as push forward more standardizing product and service. It means many efforts should be made on making use of the innovation, management and talent, further specialization, the expansion of internet financial channel and more specialized products and service. Many efforts should be made on establishing the financial power, brand and reputation, the connection with Guarantor Corporation, the co-operation with banking partner and other investment corporation. Furthermore, more diversified products service is to be created in order to taking initial steps on diversification.Under the current market, the state-owned banks should expand the traditional channel and innovate more products, enrich and expand the supply chain financing. Whatever we do, the purpose should be reached on expanding the internet financial channel and product innovation, the strengthening with the online financial platform, the expansion of intermediary channel and product innovation, the co-operation with other guarantor corporation and insurance corporation. We should pay attention to increasing common clients channel and product innovation, maintaining the relation with industrial park and professional markets, expanding the banking partner and product innovation, and strengthening mutual co-operation with the mini-loan corporation and other investment corporation. All the above channel will help us to push forward more standardizing, specializing and diversifying products and service which meet the market demand. And relevant measures of risk control should also be made to support the development of the SME, so as to solving the financing problem of the SME which suffer the lacking of mortgage and pledge collateral on applying for banking facility.