Research And Analysis Of Relationship Lending Between Small Banks And SMEs Based On Xuecheng District In Zaozhuang

The relationship lending refers to the behavior of funds made by the bank who contacts with the enterprise in long-term and multi-channels, to accumulate internal information concerning the enterprise and its owners. Since the1990s, the theory of relationship lending has gradually raised the interest of the Economics and Business management practices seriously. The basis of relationship lending is information asymmetry, as well as the lack of normative information. In our current credit and information environment, given the current situation of local small and medium-sized financial institutions, financial support for SMEs and SME financing situation, the development of the relationship between small banks and SMEs is helpful to resolve SME financing difficulties. Therefore, the significance of this writing is to find a feasible way to solve the problem of regional SMEs financing.This article base on the credit theory, especially the emerging relationship lending theory, we also learn from the successful experience of the United States, Japan and Germany. Taking Xuecheng’s small banks and small and medium-sized enterprises as an example, we are able to probe the feasibility and means of the implementation of relational financing in China. Specifically, the main content of this paper is as follows:Firstly, we systematically introduce the relationship lending theory and bank credit theory. We also combine the development and the concept of this theory in detail. What’s more, we explore the advantage of the relationship lending compare to the other types of credit. Secondly, this paper summarizes the development status in the United States, Japan and Germany, the system summary, and on this basis we can extract the experience beneficial to our country to develop relations of credit. Thirdly, take Xuecheng’s small banks and SMEs as an example, we analysis the feasibility and means of financing in the development of our country.Based on former analysis, the paper concludes that:the development of the relationship lending is good for strengthening the communication of information between small banks and SMEs, can effectively solve the financing difficulties of SMEs, can also enhance the core competitiveness of small banks and achieve health sustainable development. Small banks have unique advantages to develop the relationship lending compared to big banks. Therefore, we should make great efforts to develop the relationship lending between small banks and SMEs credit, to promote diversified cooperation of the bank-enterprise, only this way can we solve the financing difficulties of SMEs. Finally, to solve a series of problems that exist in the development process of relation lending, the paper gives a series of policy proposals so as to promote the development of the relationship-based financing rapidly and healthy, in order to solve the problem of financing of SMEs fundamentally.