A Research On Addressing The Financing Problem Of Small And Micro Enterprises Relying On Community Banks

Along with the social development into the new normal,our country to vigorously promote popular business and government departments to promote peoples innovation policy support to small micro enterprise will become our country social economy development of the new mark.As a breakthrough for the development of the economic transformation,small micro enterprise has a series of advantages,such as the new mechanism introduced quickly,the reform cost is small,easy to operate.As a breakthrough for economic restructuring,small-and micro-sized enterprises have many advantages,such as introducing new mechanism quickly,costing less in reform,and operating easily.Therefore small-and micro-sized enterprises,are the main impetus for deepening reform.They have created huge opportunities of employment,helped to increase residents income and met the demand of market development.But now,they confront financing problems.On the one hand,enterprises lack efficient financial management system and collateral for credit funds;on the other hand,in our country,the financial system is still imperfect,with no institutions specially targeting at the need of small and micro-sized enterprises,making it difficult for them to acquire loans.The ongoing restructuring and upgrading of economic system brings about profound change of the banking industry,making it gradually move from a stage with high growth,high interest gap and high profit to a stage filled with development opportunities brought by new normal and economic restructuring.These years,community bank,as the target of strategy transformation,has developed rapidly,taking an initial shape of multi-service system,covering both urban and rural areas,and becoming extremely convenient and efficient.However,community banks are still plagued with problems when they are serving small and micro-sized enterprises.Draw lessons from American community Banks advanced mechanism and system,in order to improve our community bank services and to deal with financing problems.Thus,it can play a better role as the "new engine" in the industrial structure transformation.In the beginning,based on relevant literature,this paper introduces both community banks In the following passage,this paper analyses the cause of the financing predicament of small-and micro-sized enterprises,and on the foundation banks in serving small and micro businesses is provided.The impediment of community banks in their development is also included.This paper also analyses the advantages and experiences of banks as Wells Fargo,Shanghai Rural Commercial Bank and China Minsheng Bank.At last,by referring to successful experience,this paper offers some suggestions to the community bank,small and micro-sized enterprises and government policy to solve small-and micro-sized enterprises' financing problems.