Research On Risk Transfer Mechanisms Of Relationship Lending Of Small And Micro Enterprises

With the continuous development of our economy and the integrity of the market economy, Small and micro businesses gradually plays a more and more important role,making about 60% of the contribution to the GDP. However, due to Small and micro businesses are lack of funds. If they want to get long-term development,they can only depend on external financing. Although the external financing channels are numerous, but the commercial bank loan is still the main channel of Small and micro businesses financing. Due to Small and micro businesses lack of perfect financial system, commercial banks can not get information through the financial statements, and the problem of asymmetric information between the bank and the businesses is serious. Besides, because small and micro businesses are in small scale and labor-intensive, having low technology and lack of collateral, so they cannot provide collateral to solve the problem of information asymmetry. Therefore, small and micro businesses financing difficult problem has not resolved for a long time. Although the state has actively promoted small micro financial development, such as support the building of private banks, guiding small loan company turn to village banks and so on, but the effect of these measures is faint, the financing problems of small and micro businesses still has not been solved.As a new method of lending, strictly providing collateral is not needed for relationship lending, and depending on soft information, relationship lending not only can improve the availability of loans, reduce transaction costs, can also provide a variety of financial services, and improve corporate finance status, ultimately help to improve the overall level of corporate earnings. However, due to the relationship lending is credit assets, commercial banks are faced asymmetric information and moral hazard which can lead corporate defaults. On the other side, the relationship lending is decided subjectively and with a high concentration, and small and micro enterprises have low risk tolerance, then small and micro enterprises relationship lending implies a huge risk.Therefore, commercial banks must manage the risk of the relationship lending of small and micro enterprises if they want to provide more relationship lending. Analyzing the gains on small and micro enterprises relationship lending risk transfer, we find the small and micro enterprises relationship lending risk transfer can reduce credit risks of commercial banks, improve the overall level of income of small and micro enterprises relationship lending. therefore, commercial banks should improve the small and micro business relationship lending risk transfer mechanisms.But the small and micro enterprises relationship lending risk transfer of commercial banks are faced some problems. First of all, small and micro enterprises relationship lending risk transfer system is imperfect, small and micro enterprises relationship lending and risk transfer methods did not give clear instructions related systems; secondly, the current method of risk transfer would weaken the close working relationship between the bank and small and micro enterprises, and easily lead to moral hazard of commercial banks; in addition, because of the risk of the transferee is difficult to measure the risk of small and micro enterprises, and soft information increased the difficulty of the pricing, leading the small and micro enterprises relationship lending risk transfer pricing is difficult; finally, the high cost of small and micro enterprises relationship lending risk transfer, inhibits commercial banks risk transfer motivation, and ultimately not conducive to small and micro enterprises relationship lending.In response to these problems, the article makes the following recommendations: First, we should improve the risk management system of small and micro enterprises relationship lending, including clearing small and micro enterprises credit process, and improving the incentive mechanism of loan officers; secondly, the commercial banks should innovative small micro-enterprise relationship lending risk transfer pathways, including strengthening of cooperation with the industry to promote a guarantor, using asset securitization and the introduction of the use of credit derivatives; in addition, we should enhance the role of intermediaries in order to alleviate the problem of asymmetric information and improving the credit rating; lastly, the government should strengthen the financial subsidies to resolve the cost problem of relationship lending risk transfer.