Seek Ways To Solve The Problem Of Loans To Smes

After 30 years of the Reform and Open, Chinese national economy has been developed substantially with increasing GDP and reasonable industry structures, achieving a development balance between state-owned enterprises and non- state-owned enterprises.Nowadays, EMS plays a very important role not only in production, but also in sales, tax and the number of employees, while state-owned enterprises occupy key industries and departments influencing national economy for a long time, so they play an irreplaceable part in socialism economy, resulted in the preference of the government. Compared with that, it's hard for EMS to get support from financial institutions due to small scales, poor effectiveness and weak management systems. Therefore, their financing have impeded the growth of the national economy.While small and medium enterprises financing difficulties concern the occasion of the Minsheng Bank financing difficulties for SME's "crux" - an enterprise mortgage, lack of collateral, the bank has developed a portfolio of security, dynamic financing, clusters of mutual-guarantees credit, micro-credit loans, accounts receivable pledge, pledge of warrantss, etc. Minsheng Bank makes plans that before 2011 the scale of business loans reach to 2,000 billion yuan. In three years, the average annual compound growth rate of SME lending is more than 200%. Minsheng Bank definite these enterprises as the SME clients, whose total assets is less than 2 billion. Minsheng Bank is more concerned about the small and medium enterprises within the "small" customer orientation.The thesis focus on investigating the situations of SME's financing, discovering the point of loan-risk of SME's loan, then pointing out the methods to solve the problem of SME's loan.In this essay, I'd like to focus on the business Minsheng Banking Corp. has made to address the financing problem.Minsheng Banking's Business-Loan, which is tailored for EMS and based on Law of Great Number, Wholesale Marketing and Revenues Covering Risks, meets customers'needs and control the risk. So this policy can satisfy the market's demands. And this thesis will focus on these following points:1. how to avoid high risks from small and middle-size companies2. how to apply Principles of Great Number and Wholesome Marketing to control risks3. how to maximize profits with the security4. how this policy contributes to Chinese financing for small and middle-scale companies as well as other banks.