Reengineering The Procedure: A Practical Study Of "credit Factory Mode" Solution For Financing Difficulties Of Smes In Ningbo

Like many other countries, financing difficulties in Medium and Small-Sized Enterprises (SMEs) obsesses Chinese government and enterprises. Unlike the matured western financial market system which has brought the diversity of financing solutions, Chinese SMEs get fund only from commercial banks and other financial institutions, which are known as indirect financing. In addition to the single financing channel, information asymmetry, low anti-risk ability, short life circle, low credit rating and insufficient credit guarantees also stop the SMEs from getting loans from the banks. After made further analysis of the cause of the dilemma, the author finds that the structural imbalance of capital supply and demand in market finally blocks the cash flow between SMEs and banks.In order to solve the problems, this thesis tries to prove the necessity and importance of establishing the Finance supporting system for SMEs among banks from the angle of process bank construction. After the comparison and analyzing of the various modes that appear in the procedure reengineering of commercial bank, this article recognized that the new modes of"credit factory"introduced and popularized by Bank of China and China Construction Bank share the most important DNA of process bank. Through the experimental test of"credit factory"in Bank of China Ningbo, the relationship between local SMEs and Commercial Banks becomes much closer, which is also the key motivation of this mode to be popularized among the banks in China. This article also proposed some useful thinking to the localization and improvement of"credit factory"mode.