Study On Chinese Large-scale Commerical Banks' Credit On Small-and-Medium Enterprises

Small-and-medium enterprises (SMEs) play an important role for nation economy whether in developed countries or developing countries. SMEs play an nonnegligible and non-substitutive role for science and technology improvement, industry cluster development, increment employment and export. So, the paper has strong practical significance. Domestic and overseas evidence indicates banks and other finance institutes are the greatest fund-supplier for SMEs. In China, SMEs'financing channels are less, which restricts SMEs'development, especially banks'credit financing. Under Chinese finance system which indirect financing plays main role, credit financing play an important role for SMEs, even credit financing is a unique financing channel for SMEs. So, it is practical significance to study SMEs'credit financing in China.Most scholars and documents think many countries there exists a structure that large banks support large enterprises and small-and-medium banks(SMBs) support SMEs. So, some economists theorize the phenomenon. The viewpoint approval of SMBs'advantages thinks that large banks'administrative structure is cumbersome and the private information of SMEs is difficult to transfer to decision departments. So it's necessary to develop SMBs to support SMEs. The author thinks: (1)it is single-faceted to develop finance system based on SMBs only from SMEs'credit financing, because the viewpoint ignore that banks structure is based on nation economy, technology, system, tradition. (2) It is single-faceted that SMBs are better than large banks in SMEs'credit financing, because large banks have such advantage as risk hold, loan t technology, and comprehensive service, which SMBs can't duplicate. (3) The information technology and the credit technology advancement causes large banks and SMBs equal grasps, which indicates the relation between the banks scale structure and SMEs'financing. In fact, large banks have superior to SMBs in SMEs'loan. The paper proves author's viewpoint is correct by means of bank market mechanism analysis, bank scale analysis, as well as empirical analysis. So, the paper puts forward policy suggestion for stated-own large-scale banks such as operation mechanism, management system, product innovation, service procedure innovation, operation mode.The main content of the article includes six aspects following: (1) Analyzes the SMEs'function and financing situation present. Compares the SMEs'definition scope; analyzes the SMEs'status and function in our country economy; analyzes SMEs'life cycle financing structure. (2) Analyzes SMEs credit financing theory frame, which mainly includes finance structural theory, assymetrical information theory, transaction cost theory, relation financing theory, credit resources distribution theory, as well as the author's default model and analysis. (3)Analyzes the relation between banks structure and SMEs financing based on theoretical analysis and empirical examination. (4) Analyzes the relation between domestic banks scale and SMEs credit financing by means of theoretical analysis and empirical examination. (5) Analyzes reasons that large banks didn't support SMEs in past and they support SMEs today. The paper puts forward means for large banks and government and SMEs to solve main problems on SMEs'credit financing. (6)Puts suggestions for large-scale banks on supporting SMEs financing based on technical and regulated research.Through theoretical analysis and empirical analysis, induction and comparative analysis, the article main conclusion and some innovations below:(1)The author believes that Chinese SMEs exist financing gap. Because of Chinese finance market is not developed, indirect financing of SMEs mainly comes from banks credit, even if so, which can not meet Chinese SMEs'financing need. Through financing theory analysis and with many empirical sample data, the paper demonstrates that Chinese SMEs'financing structure conforms to financing order theory. In other words, the SMEs'financing order generally defers to internal financing, folk financing, credit financing and the stockholder's rights financing.(2)Author analysis in detail SMEs credit financing theory, including finance structure theory, assymetrical information theory, transaction cost theory, relation financing theory, credit distribution theory. These theories are used for analysis of the difficulty of SMEs'credit financing, but any theory does not have comprehensive analysis. The author discovers there are such primary factors that affect SMEs'financing as their profit efficiency, the enterprise scale, the credit rating. And, the author discover that SMEs'credit financing does not have ownership discriminate, but the most core factor is still their quality by means of empirical analysis(3)The majority theories and scholar believe that banks concentration degree drop and the increment of SMBs is advantageous to SMEs'credit financing, and that SMBs have relative superiority to large banks in SMEs'credit financing. But, author's empirical analysis discovers that our SMEs'credit financing has not remarkably growth in all banks credit. And, the author discovers SMEs'credit financing in SMBs has drop, instead that has increased in stated-owned banks. The author believes the tendency combines the fact that SMBs'operation trends urbanization and large enterprises, and that large-scale banks strengthens vigorously to SMEs'credit financing because country encourages banks to support SMEs. Therefore, we cannot simply use the Western theory to example Chinese banks'credit behaviors.(4)Majority scholars, especially domestic scholars, believe SMBs have comparative superiority to large banks in SMEs'credit financing and have higher efficiency. But the author believes that large banks have such advantages as information collection and processing, risk assessment and management, service innovation, loan technology, which cannot be duplicated by SMBs, therefore, large banks is not inferior to SMBs and efficiency of large banks is superior to SMBs.(5)Author thinks it is effective for large-scale banks to support SMEs'credit financing. Large-scale commercial bank may strengthen such aspects as operation mechanism, management system, product innovation, service procedure innovation, operation mode to effectively support SMEs credit financing in China.