An Analysis Of The Solutions To The Problems Of The Financial Services Of Small And Micro Enterprises In China's Commercial Banks

According to The China Report Hall,the number of micro,small and medium enterprises in China is reached 40 million,accounting for 99.7% of the total number of Chinese enterprises.The sum of small and micro enterprises accounted for 97.3%.With a large number,small micro enterprises not onl y contributed to 60% of GDP in 2017,but also provided more than 80% of jobs in cities and towns.Therefore,small and micro enterprises play an important role in China's economic societ y.However,problems such as financing difficult y,high financing cost and narrow financing channels have been plaguing the large number of small and micro enterprises.The small and micro enterprises do not have normative financial s ystem,financial professionals and the scale of them is small.They cannot provide high qualit y mortgage,so commercial banks have not showed great enthusiasm in small and micro enterprises loan.And the bank service deviating from their market positioning,the cit y commercial banks have not provided good service for the small and micro enterprises.Under the credit crunch,the market do not have enough available money.For reasons of their own profit maximization,risk minimization,banks are willing to loan to the large,high-qualit y enterprises,capital requirements of small and micro enterprises often cannot be met.In order to support the d evelopment of small and micro enterprises,the government has introduced man y policies in recent years.These policies can reduce the operating pressure and encourage financial institutions provide loan service for small and micro enterprises.Under the leadership of the government,the loan balance of the small and micro enterprises in 2016 grew.In the face of complex environment,commercial banks are constantl y ex ploring new ways to serve small and micro enterprises.Commercial banks use internet finance to ex pand their service platform.The first part of this paper anal yzes the particularit y of small and micro enterprises,anal yzes and compares different financing methods of small and micro enterprises,and finds out the current situation of financing di fficulties.The second part evaluates the current status of commercial micro and small financial services practices of commercial banks,and lists the main existing three issues: outstanding credit risks,deviating from the market positioning of services and convergence of product design,and expounding the importance of developing small and micro financial services for commercial banks.The third part is based on the actual status assessment of the second part and designing corresponding solutions.: “Internal Inclusion + Technology” strengthens credit risk management,conducts a comprehensive local business environment anal ysis and designs products and services based on the actual needs of the compan y.The fourth part anal yzes the overall feasibilit y of t he solution and conducts case tests on each solution.In the case of small and micro enterprise credit risk management program ex amples,the Construction of Banks chose to use big data to solve the problem of information as ymmetry,the use of group loans t o solve the mortgage issues of Minsheng Bank,and the success of Taizhou,Zhejiang small and micro enterprise financial service credit information sharing platform ex amples.It shows that the use of big data and the proposed credit information database wil l help solve the information as ymmetry between banks and enterprises and the collateral problems they cause.In the case of the service positioning optimization program,the Bank of China and Shandong Branch chose local products that suit local conditions.It shows that based on the local business environment,it can provide small and micro enterprises in the region with service that meet the development of the industry.In the case of product and service design scheme inspections,it selects the subdivisio n of the customers b y the Bank of China and the Construction Bank.For small and micro enterprise customers with different actual needs,the correct customer segmentation can help commercial banks to provide targeted and customized services to small and mi cro enterprises with different needs.Finall y,I summarize the full text and put forward m y hope.