Research On Development Strategy Of Small And Micro Enterprises Loans Business Of Bank Of Chengdu

Numerous small and micro enterprises play a very important role in economy and society. In recent years, the national government attaches great importance to the development of this group, has introduced a larger number of measures and policies to encourage and guide commercial banks to carry out small and micro enterprises loans business, improves the coverage of small and micro enterprises loans business, and actively supports the restructuring and development of the real economy. In the past few years, commercial banks seized the four trillion plan opportunity to invest heavily in real estate and infrastructure, as a result, achieving a rapid growth of business scale and operating profit. With the arrival of economy slowdown and restructuring, in order to complete business transformation and restructuring, commercial banks also forced to change their development model, from over reliance on government financing platform and real estate to small and micro enterprises in the real economy.In the past, Bank of Chengdu, which was founded in 1996, mainly relied on real estate companies, group corporations, government financing platforms and other essential clients to promote business development. However, considering national macroeconomic regulation of real estate and government financing platforms, decreasing contribution degree of profit from those essential clients, innovation of interest rate marketization, and intensifying competition of banking industry competition, Bank of Chengdu treats small and micro enterprises loans business as a strategic focus and provides huge amount of human and financial resource in order to find a long-term development of business. In the real situation, due to late starts, weak foundation and out-dated methods, Bank of Chengdu has many problems of developing small and micro enterprises loans business, which lead to poor effect of cooperation between banks and enterprises. It is worth mentioning that since 2014, Bank of Chengdu is facing unprecedented challenges due to its increasing non-performing loans of small and micro enterprises, and slower growth rate of new loans.In this paper, the development of small and micro enterprises loans business in Bank of Chengdu was introduced, by comparing the specific practice and performance level with relevant advanced banks to find out the problems and immanent causes, and using SWOT analysis model to make a comprehensive diagnosis, including the opportunities and challenges as well as the advantages and disadvantages. On the basis, proposing the strategy recommendations to improve small and micro enterprises loans business for Bank of Chengdu, involving specific development orientation, development goals, marketing strategy and safeguards. This paper provides a practical guidance for Bank of Chengdu to carry out small and micro business effectively and reasonably in the new situation, and also has some reference value for other banks.