Commercial Banks In China Sme Credit Strategy Research

The problem of SMEs financing difficulties is a world-wide issue, China included. In recent years, small and medium enterprises is playing an increasing role of economy in China, by the end of 2007, there were more than 4200 small and medium enterprises which creating around 60% of GDP, providing about 70% jobs opportunities. Nowadays, financing constraints becomes the most important bottleneck factor in the process of SMEs' development. The reasons include both SMEs' factors and institutional factors in commercial banks. Thus, resolving the problems occurred in small and medium-sized credit could not only lift the financial constraints of small and medium enterprises, but also the inevitable trend of commercial banks in the future development. So this topic is of great theoretical and practical significance.Based on normative analysis and empirical analysis, this paper has used game theory methods in SMEs' credit problems research. At the basis of summing up the financing difficulties of small and medium enterprises home and abroad, this paper put forward the bank credit rationing theory and the symbiotic theory, which provide internal mechanism and theoretical foundation for the study of the relationship between SMEs and commercial banks. Then it finds out the causes of financing plight by anglicizing the actuality,limitation and reasons of SMEs' financing. Through the establishment of game model about credit behavior between SMEs and commercial banks, this paper has obtained the default probability of SMEs and commercial bank credit terms respectively. The conclusion of the game model answered the questions whether should commercial banks provided credits to SMEs, which is the core and footstone of the thesis. At last, combine with the conclusion of the game model, this paper make corresponding countermeasures and suggestions from SMEs,commercial banks and social policy level.