An Empirical Study On The Development Of Small And Medium-Sized Banks To Suspend Small And Medium Enterprises Financing Constrains

As the basic of domestic economy,The SMEs(small and middle enterprises)have made the important contribution not only to the field of employment,but also to the technological innovation and economic development.However,there are many financing constraints for the SMEs.In the financing process,The management status and advantage between among different parties would affect the "natures of the transaction".The competitive structure of the financial market will also affect the financing opportunities and costs of SMEs.In the long term,Chinese financial system has been led by the banks.The efforts of reforming financial system such as reforming joint-stocks for state-owned commercial banks and developing small and medium-sized financial institutions are aimed for building mechanism of markets competition and enriching the diversity of financial supply.Since the outbreak of the global financial crisis in 2008,the domestic financial industry has begun to pay attention to the increasingly financial needs of the SMEs.The form of financial institutions is ample such as small loan companies,village and town banks and local banks,and the breadth and depth of financial services have been significantly improved.According to the official statistics,it shows that the proportion of assets of small and medium-sized banks in China's banking industry is added up to 45%in 2003,and has been steadily rising since then.In 2008,it increase to 49%,and in 2013 it reached to 58%.In 2016,the annual proportion climbed to 64%.The process indicate that the development of small and medium-sized banks has entered a new stage.Has the series of reforms in the domestic financial industry,especially the development of small and medium-sized banks,effectively improved the financing constraints of SMEs?To verify the relationship between the two has the certain academic and practical value.Based on the existing theories,this paper analyzes the comparative advantage of small and medium-sized banks in alleviating the financing constraints of SMEs.Based on the cash-cash flow sensitivity model,this paper analyzes whether China's SMEs are facing financing constraints and verify Whether the development of banks has effectively improved the financing constraints of SMEs by introducing the small and medium-sized banks' structural development index.Changes in the banking industry structure are part of the changes in the financial structure,and changes in financial structure often coincide with financial development or financial liberalization.The influence of the empirical results was examined by introducing two factors:the ratio of bank intermediation to the financial markets,and the level of financial development.Based on the financial data of domestic SME in 2010-2015 and the data on the asset size of small and medium-sized banks in each province,a cash-cash sensitivity model was used to examine changes in the size of small and medium-sized banks,structural changes in banking intermediaries and financial markets,and financial Changes in the level of development affect the financing constraints of SMEs.The study finds that the structural changes in the banking have significantly eased the financing constraints of SMEs.The level of financial development has not formed a solid link to SME financing constraints.Given the incompatibility of the banking industry structure with the economy,it imply that the level of financial development is not accord with the real economy.Therefore,China's financial reform should focus on the structural adjustment of the banking industry to optimize the financial structure.At the same time,changes in the financial structure accompany with the level of the financial development.Therefore,the adjustment of the banking structure should be aimed at creating favorable conditions for the development of small and medium-sized banks.At the same time,it also plays a essential role in continuously improving the financial market.Finally,according to the research conclusions of this paper,relevant policy recommendations are proposed from two levels of small and medium-sized banks and government.On the one hand,small and medium-sized banks should clarify the principal status in the market of SMEs,fully study and use financial technology to accelerate the development of financial services and the provision of risk control.On the other hand,the government continued to improve the financial infrastructure and system construction,vigorously develop small and medium-sized banks and build multi-level financial markets.To achieve a win-win situation for small and medium-sized banks and SMEs,promote the realization of finances that are both "universal" and "beneficial",increase the coverage of SMEs finance,and get financing support at a lower cost for a great amount of SMEs.It can solve the current "small financing difficulties" and "expensive financing" issues faced by SMEs,and ultimately realize the sustained and healthy development of SMEs.