A Research On The Small And Medium-sized Bank Crediting Advantage In SMEs Business Of China

Taken the world over, wherever in developed countries or developing countries, as the most active element of social economy, SMES played an important role in booming the economy, propelling science and technology development, accumulating industry cluster, maximizing resource allocation efficiency and increasing employment etc. However currently the facing with the operation predicament brought about by both inside and outside environment, SMEs desires more capital than ever for subsistence and upgrading construction and eagers for dependable efficient financing channels.This paper found that banking loan were the primary ways to provide capital for SMEs’ early development and good bank-enterprises relationship were critical to the acquisition of loans after discussing the reasons why SMEs had a problems with financing. Considering cost, risk and revenue, compared with big banks, small and medium-sized banks has an edge in providing financing services. Large-scale commercial banks were not born with the advantage in offering financing services to SMEs while small and medium-sized banks had a comparative advantage in this respect. At present, large-scale commercial banks and their branches held a dominant position so that small and medium-sized banks grew comparatively less sufficiently. Thus this banking structure led to serious financing restraint problems to SMEs in our country.It’s very meaningful to develop SMEs with big efforts for the sake of resolving socio-economic problems. In those local theoretical researches concerning SME financing problems, the relationship between n SMBs and SMEs were one of their key points. Lots of research literature on all accounts expounded SMBs’ advantages in promoting SMEs’ financing services and that SMEs’ financing difficulty should be solved through developing SMBs. It was under this circumstance that this paper tried its best to analyze SMBs’ inborn comparative advantage both theoretically and with large numbers of data, which were on the basis of previous research results. In addition, successful SME practices would be adopted as case studies in later chapters. At last, useful suggestions would be raised in the hope of inspiration to settle the tough financing predicament of our countries’ SMEs.