Research On The Development Of Commercial Banks' Venture Loan Business In China

China Banking Regulatory Commission,Ministry of Science and Technology and the People's Bank of China enacted a regulation of venture loan to make a top-level design of the development of the venture loan.Venture loan can achieve a balance of the equity financing scale and the debt financing scale,improve the resource allocation efficiency,perfect the financial market pricing system,reduce the financing costs of the science and technology-based medium,small and micro-sized enterprises,and achieve a win-win situation in the banking and equity investment institutions.It's of great significance in reducing the risk of China's economic operation and promoting economic growth.Improving the power of commercial banks to carry out the venture loan business,reducing the risk faced by commercial banks in carrying out the venture loan business and establishing a mature mechanism for the operation of the venture loan are the guarantee of the healthy development of commercial banks' venture loan business.The paper reveals the theoretical basis of the venture loan business,introduces the development process of the venture loan of China,analyzes the existing model of the venture loan,uses comparative analysis to compare the advantages and disadvantages of different business models,and carries out the principles to operate the venture loan business which are"Guarantee Loan Security","Maximize Profits","Increase Market Share","Financial Ethics"and "Regional Pricing".There are also some challenges which are about risk assessment system,risk isolation mechanism,loan pricing,market exit path and professional team building when the banks are operating the venture loan business.Therefore,in addition to the specification to guide the existing business model,the paper presents to build China's Business Growth Fund model creatively with the successful operational experience of the Business Growth Fund of the UK.At last,the paper puts forward some countermeasures and suggestions of the venture loan from three aspects:supervision,commercial bank and society.The Supervision should improve the financial regulatory model and improve the relevant laws and regulations on the one hand,introduce the targeted support policies timely and make a good top-level design on the other hand.The commercial bank should improve the risk control mechanism,implement the risk isolation system,make an exit plan ahead of schedule and establish a suitable risk management system.The society should promote the construction of information sharing platform of the venture loan,do a good job of cultivating high quality real economic projects and improve the relevant supporting services constantly.