Perfecting Research Of Credit Mode To Small And Micro Enterprises Of Domestic Commercial Banks

Small and micro enterprises are important part of the national economy, and they play an important role in many aspects, like providing jobs, promoting urbanization, economic growth and maintaining social stability. Healthy development of small and micro enterprises can directly affect the future of China’s macroeconomic trends. The small and micro enterprises have a strong development momentum, but the scale of development and operating conditions are restricted with financing issues. With some outstanding issues like poor foundation conditions, imperfect enterprise management system, weakly anti-risk ability, it’s difficult for small and micro enterprises to financing. The preferred channel of financing for small and micro enterprises is the loan of commercial banks. However, it’s difficult for commercial banks to agree ban application of small and micro enterprises, with considering risk of credit. This situation of funding lack becomes worse. The production and operation of small and micro enterprises fall into a vicious cycle, and it becomes harder to get loan funds from commercial banks. Therefore, commercial banks are required to launch financial products and services, increase credit support, provide different credit model for different needs of small and micro enterprises. Commercial banks can effectively solve the problem of lack of funds.Nowadays, there are some problems of credit business to small and micro enterprises, like less specialized financial services organizations, less relevant policies, and the process of small and micro loans are complex and time-consuming. It can develop new markets and achieve new profit growth for commercial banks to increase small and micro credit business, in this current competitive market environment. Small and micro enterprises need to overcome their own shortcomings to meet some mandatory targets of credit business to commercial banks. While it’s also necessary for commercial banks of China to change the credit mode, upgrade products and services. There is a big gap for credit business between commercial banks in China and other developed countries.In this paper, the credit mode to small and micro enterprises of commercial banks is studied. We raise issues of credit business to small and micro enterprises by analyzing the development and financing of the status quo, and analyze the commonly credit model from the perspective of commercial banks. At the same time, we analyze the pros and cons of "credit factory" mode, microfinance model and new model of network financing for example. In terms of guarantee system, and construction of the credit system to analyze credit environment and policy of small and micro enterprises of foreign commercial banks. We also identify shortcomings of domestic commercial banks and foreign experience that we can learn, with comparative analyzing from credit business strategic positioning, organizational structure of commercial banks, credit products, credit business processes and risk management. By the preceding analysis, we can propose possible perfecting ways to solve the credit financing problems of small and micro enterprise credit of "credit factory" mode, microfinance model and new model of network financing.Introduction and innovation for credit mode to small and micro enterprises of domestic commercial banks is successful, but there are some shortages. In recent years, commercial banks are encouraged to solve the financial problems of small and micro enterprises by government, innovations should be increased and combined with the existing resources for commercial banks to service for economic growth of China.