Study On The Impact That SMEs’ Credit Busi Ness Has On City Commercial Bank’s Profit

Banking circles and academic members widely accept the conception that city commer cial bank gain profit and realize its development though providing credit products and serv ice for medium-sized and small enterprises (SMEs), but they take less attention on the pro cess. Compare to the big enterprises, whether the SMEs will take greater influence on the city commercial bank, what’s the influence pathway, how the city commercial banks deal with the relationship with the SMEs, all these questions are unclear. Based on these prob lems, this paper tries to find the solution by quantitative and qualitative analysis.This paper takes preliminary investigation on the earning performance and credit busin ess status of city commercial bank, gives objective description of the positive correlation b etween SMEs’credit business and city commercial bank’s profit. By quantitative model, th e paper gives further explanations that comparing to the big enterprises, SMEs" have large r impact on city commercial bank’s profit and it has stronger impact process and shorter onset time. The reason is for SME’s credit business, city commercial bank has strong bar gaining power, reasonable industrial distribution, low business cost, controlled business risk, abundant and matching products. SMEs’credit business has greater contribution to city c ommercial banks’profit. As a result, city commercial banks must build solid and long-acti ng relation with SMEs. That means city commercial banks should consider aspects like id ea of development, quality promotion, external optimize and so on, try to realize an integr ated symbiotic state, establish leadership in SMEs’credit business market, and realize sust ainable profit and long-term development.In conclusion, the survey and research in this paper consolidate the market positionin g that city commercial bank serves SMEs, point out the necessity and measures to improv e and strengthen the SMEs’credit business. The paper has great practical significance for the development of the city commercial bank。...