Research On Zhejiang Tyrone Bank Loans To Small And Medium-sized Enterprises

Small and medium-sized enterprise financing has repeatedly become theprobe topic of theoretical and practical circles. To solve the problems of SMEfinancing loans related to the survival and development of SMEs, and thestability and healthy development of society. From the practice of domesticBanks, as a local small commercial bank formed by private capital the ZhejiangTyrone commercial banks use the relational lending technology extensively. Inthe beginning of establishment, it always takes the SMEs as the target customers,and has made a very great achievement in provide financing for small andmedium enterprises. Tyrone bank’s success makes the relational lending becomethe "Tyrone model" with strong local characteristics, provides a vivid case tosolve the problem of financing SMEs, but also provides a good for reference forother commercial Banks of SMEs’ loan practice.This paper first introduces the theories that support SMEs lending, includingasymmetric information theory, relationship lending theory, small banksadvantage hypothesis theory. This paper proposes that asymmetric information isone of the important reasons for the SMEs financing difficulty that generallyaccepted by the theoretical and practical circles, while relationship lendingtechnology is a credit technology which is developed for the production andprocessing of soft information, to a great extent, it solves the informationasymmetry between the banks and SMEs. To promote relationship lendingtechnology, small banks is superior to big banks; also have more advantages todevelop SMEs loan business. This article takes Tyrone bank’s successfulexperience as a case, carried out research and analysis. First it introduced theTyrone bank business status, and describes some of the measures taken on loansto SMEs. After, it has a detailed analysis of its reasons for the success, so thatmore people can learn and understand it. Tyrone bank’s success has brought us aprofound revelation: consistent localization, the loan business must comply withthe characteristics of the funding needs of SMEs, the consistent positioning oflending to meet the funding needs of SMEs characteristics, adhere to innovation,the path of differentiation, advanced corporate culture so that enterprises have a strong cohesion. Tyrone’s success was inevitable, but at the same time in theirextensive promotion also exists some uncertain. For how to ensure that the"Tyrone mode" be promoted successfully, this paper put forward the reasonablecountermeasures and suggestions including the external environment and theinternal environment that the "Tyrone model" needs in its promotion.