A Study On Bank Loan To Smes

In 1990s, people began to attach an important role of small-and-medium enterprises (SMES) in our economic reform and development. Yet it is generally admitted that the difficulty of obtaining external financing is one of the important factor limiting their further development of potentials and speed. Generally speaking, bank loan is the important, perhaps the most important resources of SMEs financing, and in china, it is even the single important external financing. Therefore , make a study on bank loan to SMEs is significant both in theory and in practice.I discussed the existence of SMEs' financing gaps,and their negative effects on the development of SMEs. Bank financing of SMEs within a framework of SMEs' financing structure emphasize the effects of information and agency problems in deciding the differences between SMEs and large enterprises in financing structure. My opinion is that the defect of structure of bank size is a sign of financial repression in china, and not the decision cause of the difficulty of SMEs' bank financing.I dwell on the main factors that influence SMEs' bank financing. To begin with ,I analyze the negative effects on SMEs' bank financing of interest rate constraint ,bank monopoly, and information asymmetry in the frame of debt contract theories. Then,I conclude that financial repression is the institutional cause that incurs the difficulty of SMEs' bank financing.Dealing with the solution of SMEs' bank financing in China is rather a summary of the study on SMEs'bank financing in one hand, and a systhesis of various angles of this thesis on the other hand.