Study On SMEs Credit Modle Of CCB SMEs "Credit Factory"

As we know, with the differentiation between the interest rate on saving and loangetting smaller, and the competition increasingly intensifies, the pressure for banks togain profit will be huge in the future. After the financial crisis and the recession of thereal economy, how can China Construction Bank cope with the challenge in thiscomplexity and volatile market environment, the first thing China Construction bankneeds to do is to find a new profit growth point. The small and medium sizeenterprises as the main force of China economic growth has a big potentialopportunity. However they still face lots of problems when applying a loan from thebank. it is still like a gold mine needed to be discovered.From the strategy view, china construction bank has already realized howimportant of The small and medium size enterprises for the future development of thebank. In order to gain sustainable development, China construction bank have to catchthe opportunity and seize the business loan market for this kind of companies. In2005,China construction bank has started to become a strategy partner with theinternational bank, such as America bank, temasek and etc to share the technology andexperience. There have been done a great number of researches and innovation onmanagement philosophy, management methods, business process, risk control,product support, stimulation assessment and etc. it has built a more practical businessprocess.Comparing with the traditional business loan pattern, China Construction bankusing the model of “Credit Factory” to promote the “five centralise”,namelycentralising the grouping marketing, centralising the mortagage registrationmanagement, centralising the loan management, centralising the off-site monitoringmanagement and centralising the document management. The promotion of the“Credit Factory” greatly enriches the range and the pattern of business loan whichmade the China Construction bank establish a new market to provide financial sevicesfor the medium size and small enterprises and occupy some market share.Even though the global economic showed the sign of recovery since2013,thelow growth rate will continue due to the small recovery, also the deep constradictionof domestic economic will be significant. The conflict between the te pressure dued to the economic moving downward and the oversupply is growing. The issues such asthe increasing production cost and lack of innovation of the companies coexist, thereis contradiction between the slowdown growth rate of fiscal revenue and the rapidlyaugment in the government expenditure is more manifest, there is the dilemmabetween the excess capacity and stable employment,all of factors mentioned abovemade the sustainable economic growth facing a difficult challenge. Due to the impactof the external macroeconomic enviroment,economic growth rate slowdown andfinancial disintermediation aggravated, the financing options are diversification andcompanies are less relying on bank for the capital. Some of the enterprises can repaythe bank loan in advance by borrowing at a lower interest rate from other channel.The qulification of the loan for the small and medium size enterprises is dropping.The risk for the private enterprise quickly increase. Effective demand is shortage. Thestress to enhance the intermediate business income and loan granted to the corporationis enormous. After the operation of the present financing model for9years, the bankhas to face the innovation and reform in this competition day.This essay began with the small and medium size enterprises financing theoriesfrom the domestic and international scholars, based on the innovation research ofdomestic scholars on small and medium size enterprises financing model, overallconsideration the issues that the small and medium size enterprises may encounterwhen applying for the loan and the capital demanded, comparing the raising capitalmodel of the small and medium size enterprises with other domestic and internationalbanks, combining the theory and practical and putting it into use, taking the Chinaconstruction bank’s “Credit Factory” of small and medium size enterprises as anexample, focusing on the research of innovation and problems found in the model,bringing up the possible solution to promote the innovation of capital rasing modeland solve the financing problems of small and medium size enterprises.The paper first illustrates the ground facts the topic based on, the purpose andmeaning of the research and the major content and methods of this research.Secondly,it comprehensively illustrates the basic fund raising theories of thesmall and medium size enterprises, and the present status of the theories research fromthe academic,also presented the useful theories.At the mean time it looks for the the financing model that suits for the small andmedium size enterprise operating in China according to the reasons that cause thesmall and medium size enterprise financing difficulty which had been affected by internal and external factors.Next is to discuss the features of how China construction bank process the fundingmodel of small and medium size enterprise “Credit Factory”,while analysing thetradional financing scheme from the following three aspects: the China Constructionbank’s practical situation, small enterprise department’s state of business of ChinaConstruction bank and the issues for small enterprises financing difficulty andpointing out the advantage and doable of the “Credit Factory” financing plan.Following by taking the China Construction someone province branch as anexample shows the model operation effect from the angle of loan size, integratedcontribution,the degree of the product coverage and the intermediate businessincome,etc.And then the paper promotes the strategies and suggestions that work for the smalland medium size enterprises business according to the features of operation effect.The paper reaches the sloutions and advices according to credit screening sress onadmittance innovation,guarantee forms stress on products creation and assetsqualification stress on risk control innovation, emphasising on further optimize andimprovement due to the paired solutions.In conclusion, the essay makes a disclosure in general and outlook the futureresearch.