Construction Bank Small Micro Enterprise Credit Development Strategy Research-in Hunan Province As An Example

With the increasingly fierce competition of commercialbank credit share between large enterprises and the lower and lower efficiency, it is difficult for a large number of small businesses to finance from banks even paying higher costs. With the narrowing of the credit spreads of large enterprises, for commercial banks to transform their development, it has become a very important program how to develop the credit of small businesses, optimize the structure of banking, strengthen the competition, diversify the concentrative risks and expand more new space for profits. For Hunan Branch of Construction Bank of China, its small loans accounted for only 3.9% of the total loans with a small scale and low percentage. Based on the above, taking Hunan Province as an example, this study will carry out the research of "the credit to small businesses" on the branches of Construction Bank of China.In view of the literature home and abroad on small businesses, this study discussed the demand characteristics of small businesses credit and the developing trend, the reasons why it is difficult for small businesses to get credits, as well as the constraints and opportunities for the branches of Construction Bank of China to provide credits to small businesses. Small businesses are currently facing a good developing trend, and the policy environment is gradually improving, which creates a good opportunity for branches of Construction Bank of China to provide credits to small businesses. Meanwhile, small businesses are also facing the constraints as follows. A small part of micro businesses have suffered losses and have had a bad credit, the social credit environment is not so good, the development of small businesses and the credit are not well recognized, the policy of credit is not well implemented, management is weak, and the evaluation and incentive mechanism is lacked. At last, learning from the experience of Banco Santander of Spain, this study discussed the strategies applied by the branches of Construction Bank of China in Hunan Province, put forward the differential development based on the market segment and the needs of small businesses, innovating the risk evaluation system of small businesses clients, strengthening the evaluation model and risk control of small businesses, optimizing the credit service process, perfecting incentive mechanism and the system of due diligence and exemption. In conclusion, it is suggested that we should seize the opportunity that our country is strongly supporting the development of small businesses, expand the credit market share of small businesses through institutional innovation and create the new businesses and profit growth of Construction Bank of China.