Research On Credit Business Modle Of Small And Micro Enterprises Of Bank Of Changsha

Abstract:With the development of market economy, smallµ enterprise has become one of the most active economic composition in our country. Although smallµ enterprises have made outstanding contributions for our country’s economic leap, its poor ability to resist risk, opaque information and other defects lead direct financing become difficult. Therefore, the commercial bank credit is still the main external channel of financing. Compared to large and medium-sized commercial Banks, city commercial Banks have more advantage on the development of small micro enterprise credit business.According to the author’s working experience in the Bank of Changsha, data collection and lessons from the successful cases of commercial Banks at home and abroad, This paper conduct a comprehensive analysis and research of the current smallµ enterprise credit business model of the Bank of Changsha. Analysis found that the smallµ enterprise credit business in The Bank of Changsha is experiencing a good momentum of development, but its model still has some problems, such as lack of credit of smallµ enterprise, unqualified loan approval program and insufficient risk control, etc. The reasons of these problems are multiple, such as information asymmetry between the bank and smallµ enterprises and so on. To solve the problems in the credit business of Bank of Changsha, this article presents a series of targeted countermeasures and suggestions, like reforming the bank’s financial mechanism and service technology, perfecting the loan approval process (pay more attention to the former investigation, strengthen credit loan monitoring, strict post-loan management).These countermeasures and Suggestions will help to consummate the existing smallµ enterprise credit business model. During this period, The Bank of Changsha will make its smallµ enterprise financial business move towards to the direction of the "large-scale, high benefit, high quality".