Study On Relationship-based Lending Support To Small And Medium-sized Enterprise Financing

Since China’s reform and opening up, with the rapid development of small and medium-sized enterprise scale, its function become more and more important in the socialist market economy. Especially our country is in a critical period of economic transition and social transformation, their development not only has an important effect on stabling economic growth, and maintain social stability, build an innovation-oriented country, alleviate the growing employment pressure. But now they are faced with heavy burden, high cost, lack of talents, lack of funds and so on in the development process, especially financing difficulties.Since the second half of 2008,the negative impact of global financial crisis is increasingly obvious, financing difficulties appear more prominent. How to solve the financing difficulties of small and medium-sized enterprises has been widespread issue of theory, financial and business in the current.According to the research needs, the author read lots of study about financing difficulties of small and medium-sized enterprise, and sorting out my own ideas. First, through analyzing the positive and negative effects on lending interest under asymmetric information, finding out that credit rationing is the best choice, then proposing that asymmetric information is the root cause of financing difficulties of SMEs in China. Through the comparative analysis of relationship lending and other financing ways under asymmetric information, then find out that relationship lending is the most representative and most suitable financing for SMEs. Second, the Minsheng Bank’s relationship lending model is presented in detail. Then using horizontal, vertical and trend methods to analyze the development of its relationship lending to find out the fruits and shortages. Finally, combined with China’s situation, how to maintain and improve SME relationship lending are suggested from government, banks and SMEs’ point.