Research On The Difficult Financing Of Small And Medium Enterprises From The View Of Bank

Enterprise is the main subject in the market economy, it plays an important rolein the development of the national economy. SMEs account for the majority in theenterprise. In recent years, SMEs (mainly private enterprises) are playing anincreasingly important role in promoting economic development, expandingemployment, improving people’s lives and building a moderately prosperous society.Today, the current funding is still an important factor in restricting the rapiddevelopment of small and medium-sized enterprises, in recent years, SME financingissues, particularly bank credit financing issues has been the Key issues on whichglobal theory and practice focus. Most studies are conducting a purely theoreticalanalysis, or only certain aspects of the analysis，the theory is not comprehensiveenough and did not come to a fundamental conclusion. Meanwhile many literaturesthat standing on the bank angle to study the SME financing problems, standing on thebank angle on financing SMEs research literature, but few scholars have studied thisissue combining with the social reality.Based on the objective fact of financing SMEs, this paper analyzes the creditfrom two aspects（Banks and SMEs）of a thing，On SME financing，we study theproblems of banks through questionnaires. In the face of the bank’s lendingrequirements, SMEs are able to meet bank requirements? The article is divided intofive parts: Part I: The paper. introduces the background and significance, innovationliterature review, research methods and ideas. Part II: introduces the relevant theoryand the status of SME financing. Part III: Firstly, the design of the questionnaire aredescribed, secondly, introduce the banks own problems and analyze the problemcombined with questionnaire, then we come to the conclusion. Part IV: Introduce theexistence factors affecting SME financing, and analyze these factors according to thequestionnaire (a). Part V: According to the above analysis, we give the policysuggestion and analyze the limitations of the research paper.Through the analysis of the article, conclusions are summarized as follows:(1) Banks’ no specification management of risk increases the overall risk facedby banks. (2) In the credit process, the cost control of the bank’s needs to be strengthened.(3) SME business management exists loopholes、 high financial risk andoperational risk.(4) SMEs have limited profitability and development prospect is uncertain.(5) SMEs have credit indifferent awareness, credibility is generally low.For the above conclusions, we give the following recommendations:(1)We need to strengthen risk management and reduce overall risk faced by banksfrom three areas that the internal control environment, risk management and internalcontrol activities.(2)Banks should be looking for the approval process for SMEs, while doingbefore, during and after managing to reduce loan losses.(3)SMEs should strengthen management and reduce business risk in the businessprocess.(4) In the ordinary course of business, SMEs should strengthen creditmanagement, at the same time credit guarantee institutions should play its roleactively.