Research On Bank-Enterprises Relationships And The Availability Of SME Relational Loans In China

In China,SMEs create more than half of the final product and service value for the whole society every year,and provide more than 80%of the post demand for urban employment,which greatly promotes the process of "mass entrepreneurship and innovation" and promotes stability of society i and the development of the national economy.However,in the process of development of small and medium-sized enterprises,"funding difficulties" and "funding expensive" have always been the key bottlenecks hindering their further development.The main reason for the financing dilemma of SMEs lies in the information asymmetry between banks and enterprises.The development of bank-enterprise relations is an effective way to solve the problem of information asymmetry,which can promote SMEs to obtain bank loans.This paper firstly presents the preliminary literature research on the relationship between banks and enterprises and relational loans.It also explains the current development of SMEs and the existing financing difficulties,and conducts a corresponding theoretical analysis to illustrate the advantages of bank-enterprises relationships to improve the availability of SME loans in China.This is followed by empirical analysis and policy recommendations.The empirical part mainly uses multiple linear regression equations to study the impact of different levels of bank-enterprise relationships(bank-enterprise relationship time,relationship bankers)to loan availability(loan adequacy ratio,loan cost and mortgage claim),The empirical conclusions show that the increase in the time of bank-enterprise relationship will reduce the cost of loans and increase the loan adequacy ratio;because maintaining the relationship with a number of banks will increase the management costs,so that the increase in the number of banks will increase the loan rate and increase the loan accordingly.cost.The mortgage claim are related to the size of the bank.Large state-owned banks have more requirements for mortgagel.Small and medium-sized banks or community banks have fewer mortgage claim for enterprises.The final result shows that the establishment and development of relationships between SMEs and banks has played an important role in reducing information asymmetry,promoting the availability of SMEs from bank loans,alleviating the financing dilemma of SMEs,and achieving a win-win situation for both banks and enterprises.And it has a significant effect.