The Application Of The Credit Derivatives In The SMEs Financing

The financing of the SMEs is an embarrassing problem in every country, especially in developing countries the laggard financial system making the problem even hard. In our country, the government adopted several measures such as developing the system of credit guarantee, establishing the SMEs market and encouraging the note-financing to solve the problem, and got some achievements, but also appeared some unsatisfied problems. Nowadays the disintermediation and credit crunch get more and more serious, because the domestic banks increase the credit qualification of the borrowers in order to decrease the ratio of the bad assets, which prevent lots of SEMs from financing from the bank. In this paper, I analyze the reasons of the trouble of the SEMs financing from the advantage and disadvantage of the direct and indirect financing ways. I find that some SMEs whose informations are not transparent and credit risks are high can't find an effective way to collect capital. There have two reasons. First, the investors...