A Research On The Public Dilemmas In The Financial Service Policies For Small And Micro-enterprises By Yichang State-owned Banks

During 2008-2014,China's economy has experienced rapid growth and entered a new normal of slow growth.Under the new economic normal,China has established a supply-side structural reform policy with comprehensive upgrading of the industry and the economic structure.A key to the supply-side structural reform is to fully stimulate the vitality of private small and micro enterprises,and promote technological innovation and industrial upgrading.However,challenges in the development of those private small and micro enterprises are the financing difficulties during the economic downturn.In order to solve the financing problem of private small and micro enterprises,Yichang local government and financial(supervision)departments have formulated or implemented many financial policies around supply-side structural reforms to support entity economic transformation,in which most attention is paid to small and micro enterprises with most diverse inclusive financial policies.Among the 40 banking institutions in Yichang,five large state-owned banks have monopolized nearly half of the market share.With no doubt,the implementation of the micro-financial service policy is the most detailed and comprehensive at the level of large state-owned banks.However,in view of various factors,the large state-owned commercial banks under the jurisdiction of Yichang have not effectively implemented the micro-financial service policy as a result of their own credit preferences,leading to financial services of private small and micro enterprises being not significantly improved.This means that the implementation of the policy concerning small and micro enterprise financial service is in trouble.The causes for current dilemma are various.First,large banks have a strong preference for credit;second,the micro-financial service policy assessment system,which is dominated by regulatory departments,has great defects;third,the actual guiding role of local governments on bank credit preference has been seriously neglected,these three factors together constitute the cause of the dilemma.This paper analyzes the self-credit preference of large state-owned commercial banks in Yichang,the lack of micro-policy of the regulatory authorities,and the impact of local public sector on the micro-policy,with the purpose of analysising the causes for the current dilemma of implementing micro-financial service policy.Finally,some solutions are proposed to solve this dilemma.