Research On The Building Of Policy-oriented Bank Of SMEs In China

As an important part of China’s economic growth that can’t be ignored, small andmedium-sized enterprises (SMEs) have made a very important contribution to the economicdevelopment, the employment and the technological innovation. However, owing to kinds offactors, SMEs are facing a serious trouble of financing. Although, the government has takenvarious kinds of measures to support the SMES, the budgetary allocations to SMEs kept ahigh level; the plight of financing is still the biggest problem for SMEs. Therefore, Chinaurgently needs a new mode of support to lead SMEs to the right way. And the Policy-orientedfinance that combine the finance and public finance is becoming a new way to solve theproblem of the SMEs’ financing.This paper analyses the reason why SMEs be trapped in the trouble of financing， thegovernment must take some actions to solve the problem of the market failure, above all ofthese, we draw out the necessity of SME policy-oriented bank’s established from both theoryand empirical, And that is one of the main point of this paper. Another main point is that howto set up the policy-oriented bank, how to operate it and how to observe it in our country.Besides that, China should complete the service system of SMEs’ financing; broaden thefinancing channels for SMEs.This paper include four parts in the structure, the first part is mainly about the theory thatwill be used; the second part indicate the necessity of establishing the policy bank from boththeory and empirical; the third part is all about introducing some advanced experience fromother countries who had set up policy banks before; the last part is some advice about policybank’s establishment, management and supervision, and how to set up a perfect servicesystem for SMEs financing.