A Case Study On “Jinsui Huigong Loan” For Small And Micro Enterprises In S Branch Of Agricultural Bank Of China

As the backbone of national economy,small and micro enterprises(SMEs)not only make a positive contribution to the growth of GDP and tax revenue for the country,but also drive a large number of employment and innovation,acting a very important role in the market.However,SMEs are in a weak position in terms of the availability and universality of financial services due to their natural weak characteristics,such as incomplete corporate governance structure,imperfect operation and management,and lack of guarantee forms.The contradiction of acting an “important role” while being in a “inferior position” is the bottleneck problem that must be solved for the development of SMEs at present.In recent years,commercial banks take the development of SMEs as an important approach of innovation and take plenty of measures for SMEs.However,due to the pressure of economic downward in recent years,SMEs have encountered difficulties in operation,resulting in overdue or unable to repay loans.With the increase of loan non-performing rate,commercial banks have to face the contradiction between the goal of development and the goal of risk control.Based on the above two contradictions,how commercial banks find out their own shortcomings,improve the strategy of financial service for SMEs,develop a new approach of financial services for SMEs,has vast importance for the governments,banks and enterprises.In recent years,the S branch of Agricultural Bank of China(ABC)has actively expanded a lot of financial service innovations for SMEs.In 2018,it successfully launched the “Jinsui Huigong Loan”(JH Loan)which specifically serves the development of SMEs,injecting new “financial blood” into the sustained and healthy development of the real economy.Methods adopted in this paper include case analysis,investigation and literature survey.Taking the JH Loan for SMEs in the S branch of ABC as a case,firstly this paper introduces the basic situation of the S branch of ABC,and takes the situation of production and financing demand of SMEs in S city as the case background.Thus,it introduces the launching process of JH Loan,and briefly summarizes the product scheme of JH Loan.Secondly,the performance of the financial product is analyzed from three aspects: project management,risk control and product revenue.And the problems existing in the implementation process are pointed out at the same time.Finally,the countermeasures and suggestions of strategic optimization are put forward from three aspects: customer selection,product innovation and risk control,in order to provide reference for the financial services of commercial banks in similar regions.