China's Commercial Banks To The Path Of Sme Financial Support

Small & medium sized enterprises are one of the important powers on promoting economy development. But in a long period, commercial banks have not put a high value upor the financial requirements of small & medium sized enterprise in China. The commercial banks control loan risks of small & medium sized enterprise with old traditional methods. These methods don't suit the small & medium sized enterprises.Firstly we introduce the characteristic of financial requirement of small & medium sized enterprise, the situation of commercial bank supporting small & medium sized enterprises and experience of foreign banks. The main financing difficulty of small & medium sized enterprises is that the information is unclear and dissymmetry. Secondly the relationship between small & medium sized enterprises and commercial banks is analyzed based on the case of one state commercial bank. It explains the loan risks of small & medium sized enterprise and analyzes credit rating of commercial banks. At last, we bring forward a systemic project that controls loan risks of the small & medium sized enterprise. The project includes improving the risk evaluating method of banks, designing financial innovation product for the small & medium sized Enterprises and creating the credit rating system.The study concluded that one of the main tasks of commercial bank is cultivating and improving good small & medium sized enterprises. Moreover, the commercial banks should design financial innovation project of controlling loan risks of small & medium sized enterprises.