Research On The Development Of Commercial Bank's Domestic Trade Finance In China

Small and Medium Enterprises(SME) are playing an increasingly important role in our economy and its development should be noted.But the financial dilemma of the SMEs is still difficult to solve.This article gives an analysis of the difficulties and reasons why it is hard for SMEs to obtain finance.And based on the limitation of traditional financing,it has proposed that domestic trade finance shouldbe innovated and transitioned.Then it brings forward the self-refund trade finance in a constructive way.There are six parts in this paper.At the beginning,it gives an brief introduction for the status of SMEs.It is difficult for them to get the finance.According to current literatures,it gives a theoretical support towards the trade finance business.Then,we analyze the current financing for SMEs in lack of intensity.We need to find the way to solve this problem.Under the competition,the conversion of domestic trade financing business of comercial bank should be a good choice for SMEs to get finance and for enhancing the competitiveness of the comercial bank.In chapter two,the article presents the disadvantage of current financing channels.In chapter three,some experience from foreign banks is offered to prove that self-refund financing can be a good scheme to support the SMEs.The article emphasizes on chapter four and five.there is specification of self-refund trade finance,including the characteristics,categories,procedures,managements and cost-revenue analysis,etc.At the end of the article,the author has given some suggestions to control the potential risk.From this article,we can know that the self-fund finance(supply chain finance) is a suitable solution.Some foreign banks' experience can give us more relevant help.So promoting this self- fund finance to most banks is very worthy.