Status And Role Of The State-owned Commercial Banks In The SME Lending

Small and medium-sized enterprises (SMEs) play a very important role in the development of the national economy. However, many SMEs are facing financing dificulties all around the world because of information asymmetry, the low level of their financial information transparency, or the risk aversion of banks. Since the Macmillan Gap was proposed in1931, the financing difficulties of SMEs have gradually caused widespread concern. This issue is mainly reflected in getting loans from banks. The resolution of this issue can not rely solely on small and medium-sized financial institutions. State-owned commercial banks could make full use of its own characteristics and status.In this thesis, the auther states that the large state-owned commercial banks can make great contributions to SME lending through theoretical study, empirical analysis and case study. There are four reasons why state-owned banks are not keen on loans to SMEs. Firstly, it is a historical and institutional problem. Second, the state-owned commercial banks do not attach importance to the SME loans. Thirdly, the poor situations of SMEs impacts the state-owned commercial banks’lending will. Fourth, the weak credit of SME owners causes the state-owned banks reluctant to lend to them.Most scholars believe that the small and medium-sized banks have the advantage of SME loans relative to large commercial banks. However, the auther believes that the big state-owned banks do not naturally have disadvantages. On the contrary, the author found that the share of large commercial banks in the SME loans market has absolutely advantage. The thesis gives a detailed analysis of the advantages of big banks in the information analysis, risk control and risk management. The empirical analysis of the SME loans of the Construction Bank and Bank of China proves that the efficiency of the state-owned commercial banks is much higher than most small and medium-sized commercial banks.