Small-micro Financial Business Development Research Of MS Bank Xi’an Branch

With the constant improvement of China’s capital market and the gradualdeepening of interest rates liberalization, commercial banks urgent need to come outfrom the previous business model of relying on large customers and open up new areasof business. As China’s socialist market economy, small and micro enterprises hasdeveloped continually and grow rapidly, and they are the most active subject in ourcountry and has created a lot of wealth and provides a lot of jobs. Although small andmicro enterprises face a small size, less funds, and higher uncertainty risk, but becauseof their sheer quantity, involving almost all the sectors, some commercial banks beganto focus on small and micro-finance business by providing financing services to smalland micro enterprises to open up the steady development of a new growth pole.In this paper, we take Xi’an Branch of MS bank, which is the earliest bank to startsmall and micro finance business in China, as an example. According to the specificcircumstances, we explore the problems lies in the small and micro businessdevelopment financing and propose corresponding solutions. Basing on thebackground and significance of commercial banks developing micro-finance smallbusiness, we card related research between commercial banks and SMEs financingservices, and explore the domestic and foreign small and micro financing service-related policies and measures. Then, this article focuses on the problems which Xi’anBranch of MS Bank has encountered in the development of small micro businessfinancing, such as insufficient of deposits of funds, inadequate customer developmentefforts, increasing competition in the industry and lacking of loan pricing power, andwe propose corresponding corrective measures according to the above problem, including: improving the funding allocation, raising the deposit funding sources;implementation of customer integrated development model, improving customerstickiness; establishing a good product development and business innovationmechanisms; establishing a scientific loan pricing mechanism, enhancing profitabilitylevel. Finally, this paper analyzes the matching safeguards of small-micro financebusiness development, including the optimization of the existing organizationalstructure, establishing based on a flattening management operating model basing oninformation flow, constructing a targeted assessment mechanism of micro financebusiness and building a distinctive small-micro credit business models.