Research On Chinese City Commercial Banks Financing Support For Small And Medium-sized Enterprises

Small and medium-sized enterprises as an important driving force of the national economy, its development is of great significance. Although over the last several years, our country and encourage financial institutions to increase financial support for SMEs, but SME financing had become platitude. City commercial banks, which positioned to serve the SMEs, and at the same time they have the relatively equal status with the SMEs, so it has necessary and responsibility to increase their financial support for SMEs.Theoretical achievements on SME financing in foreign and our country include the theory of financial intermediary, small banks advantage theory, the Relationship Finance Theory. They also provide a reference for China’s banking and financial institutions to provide financial support to SMEs through the practice of community banks. First,from the internal and external economic environment, the guidance of the government’s policies and inter competition of the industry, the city commercial banks have the necessary to increase financing support for SMEs, and.city commercial banks have advantages on cost, flexibility and efficiency advantages.Then it analyzes the current situation about city commercial banks’ financing support to SMEs. Compared with the state-owned banks and joint-stock banks, city commercial banks have an advantage on loan growth and the ratio of SMEs loans to total loans. City commercial banks have some problems in financing SMEs, including positioning deviation, products and services have serious homogenization, lack of risk prevention, the credit process is not simplify, inadequate facilities and problems in training and assessing credit officers. These problems make the city commercial banks can not fully play its role as partner of SMEs. However,there are some city commercial banks just as Beijing bank provide purposeful financing training programs and personalized products for SMEs to create a financing service brand "little Giant" program; Ningbo Bank provide a good match of financial services for SMEs through the "On Golden Pond," a series financing options for SMEs. Except this,it also focus on innovative of financing products and channels,develop a full range of electronic banking services, to increase financial supports for SMEs, these measures all provide a reference for other city commercial banks..In order to improve and increase city commercial banks’ financing support for SMEs, the paper also proposed several ways to improve. Including specific and firm market positioning, dedicated service for SMEs; pay attention to innovative products and services; simplify service processes, focusing on the bank’s process reengineering;at the same time, pay attention to risk prevention in innovative products and services,reduction and avoid the occurrence of non-performing loans; in addition, pay attention to the promotion of electronic banking services, to provide as much convenience for customers, being a bank which provide real financing support to SMEs.