| With the prosperity of the market economy and the deepening reform of opening up, the number of small and medium enterprises (SME) in China is increasing. Since the1990s, China’s SMEs are in rapid growth in number that they have become a pivotal force and an irreplaceable role in the social production, stabling jobs, invigorating the economy, and innovating production. Jilin Province is one of the northeast old industrial base with a relatively weak economic base. In recent years, it has adopted continuous policies to stimulate the development of SMEs. However, due to the special features of SMEs in production that SME management mechanisms are inadequate; enterprise’s financial statements in the various reasons often can not accurately reflect the real operation situation; inadequate ability of loan guarantee is difficult to provide bank preferable collateral; short life cycle and weak anti-risk capability lead to the unstable operating efficiency; and also the income is comparatively low for banks. Because of the above existing factors, it becomes one of the bottlenecks plagued the development of SMEs and makes them in difficult financingPostal Savings Bank was set up in2007and positioned itself as a retail banking "rooted in folks, serve the public ". Under the guidance of this position, the Postal Savings Bank takes the retail loan business as the entry, improves the business varieties over the years, and diversifies the product structure. Early in2009Baoding of Hebei province as the experimental point has proposed "make it a point to return everything one has borrowed" small business loans for SMEs and Jilin Branch has been authorized to operate this business in June,2010. Solving the problem of finding financing channels for SMEs is a systematic work which needs the concerted efforts of corporations, governments, financial institutions, and so on. As a young commercial bank, Jilin Branch of the Postal Savings Bank starts late of SME loan business, although its SME customers’ credit rate of non-performing assets is at a high quality level, the credit scale does not fully play its due potential.The author has collected data from the experiences of some well-known international financial institutions on SME loans, and has carried out analysis on the existing operation situation of the Postal Savings Bank, Jilin Branch.. The analysis on start-up of the SME loan amount of Jilin Branch shows:(1) SME loan business institutions are insufficient;(2) business lines are of inadequate staffing.(3) the experience and ability of front-line employees are deficient.(4) branches approval authority is not enough delegated which affects working efficiency.(5) requirement of collateral is too demanding.(6) the processing amount of a single business is too long a time, lacking in timeliness. These factors to a certain extent have restricted the rapid development of the SME credit business. Reposition of SME credit products and management processes is not only to meet the needs of the growth of bank performance, but also to take bank social responsibility.As for the deficiencies in SME loans business management strategy and business system design of the Postal Savings Bank Jilin Branch, recommendations are made as taking adjustment of processing methods and the institutional settings, increasing the cooperation with other agencies, and segmenting credit product-targeted market design in a variety of ways to adjust the existing shortcomings of the Postal Savings Bank Jilin Branch in SME loans business development, and then to achieve rapid and sustainable development of its SME loan business. |
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