Research On Commercial Banking Services For Small And Micro Enterprises

Along with the reform and opening up,the private and other non-public economy sectors have obtained a rapid development in the last 30 years in China.They have become die backbone of the socialist market economy.At present,the proportion of small and micro enterprises has been up to more than 90%,contributing to more than 50% of the GDP,nearly 60% of the total government tax,80% of the employment.However,many of small and micro enterprises in China are still struggling to live and one of the main problems is the financing difficulty.The amount of loans to small and micro enterprises only account for less than 20% of total bank loans,and only 15% of small and micro enterprises are able to obtain bank credit support.The vast majority of small and micro enterprises can only finance through private lending.If we can not effectively solve the problem of financing difficulty for small and micro enterprises,it will certainly result in a harmful impact on the sustainable development of market economy in China.To solve this problem,the attendants of Fourth National Financial Work Conference have clearly agreed to that commercial banks must increase the level of support to small and micro businesses.The banking supervision department has also provided a number of initiatives to encourage commercial banks to support small and micro businesses,and all those policies all indicant that it is the important mission and the great opportunity for commercial bank to improve the quality of banking service and to increase the level of support to small and micro business.Firstly,this paper starts with introducing the features and functions of small and micro business in China,including their the current business environment,financing needs and the ways of financing.Secondly,it will briefly state the current situation and the problem with the banking service to small and micro businesses,followed by a series of analysis of bank financial products and giving the deep analysis in China's financial service system.Finally,it will give some advices on how to improve financing service by commercial bank.This study is divided into five parts.The first part is the introduction,which includes the research background and significance of the study.The second part is the analysis of the current situation of small and micro enterprise financing at home and abroad,mainly emphasizing the state of operation of small and micro enterprises in Zhejiang province.The third part is focused on necessity of providing high quality service to small and micro businesses,with analyzing the operation mechanism and the content of service system,financial market structure and institutional rules of financing.The fourth part starts with analyzing the distribution and the proportion of a small and micro enterprise financing product from a branch of Industrial and Commercial Bank of China,following an in-depth analysis on background and problems on bank service to small and micro enterprises.The fifth part is a case study of the commercial bank service to small and micro businesses,based on an innovative case of cooperation with a company called “One touch”.The sixth part is the conclusion of this paper with suggestions on how to offer better financing service for small and micro enterprises.