Research On Development Of Business Under Credit Factory Model Of SMEs In A Sub-branch Of C Bank

In recent years, there is a rapid development of SMEs (Small and Medium-sized Enterprises) in China. In order to increase credit support for SMEs from Banks, government has introduced a number of laws and regulations, which encourage Banks to build special financial service institutions of SMEs and lead Banks to improve and perfect the financial services for SMEs. Simultaneously, as bank homogenization and financial disintermediation are becoming more and more serious, there is increasingly fierce competition in commercial banks. Because of the intense competition and raising maintenance costs of large enterprises credit business, SMEs credit business become the important areas for commercial banks to expand the scale of assets business and raise the profitability.This paper takes the business under Credit Factory Model of SMEs in A sub-branch of C bank as the research object. By combining with relevant theoretical knowledge and author’s practice experience, it analyses the current situation of business development with the combination of qualitative and quantitative methods, and explores the problems and causes of the business with the combination of data and actual case. In view of the current situation and problems, a further development scheme and guarantee measures are developed, which aims to give suggests that A sub-branch run business more smoothly under Credit Factory Model of SMEs and provide better service for SMEs.Through the analysis of related theory of SMEs credit business and current situation of the development of business under Credit Factory Model of SMEs in A sub-branch, this paper has found problems in the development of business from five aspects, such as unreasonable personnel configuration of Diamond Team and low professional competence of customer managers, incomplete incentive and constraint mechanism, insufficient marketing, low income level and unreasonable charging method in intermediate business, inadequate risk control and high asset concentration risk. Moreover, this paper has concluded that the causes of these problems are from external and internal of A sub-branch. On this basis, the paper suggests that A sub-branch should develop business under Credit Factory Model of SMEs by perfecting the construction of staff, improving the incentive and constraint mechanism, strengthening the marketing, increasing income level and enhancing credit risk management. In order to guarantee the further development scheme put into effect, A sub-branch should establish internal multi-lateral cooperation and external cooperation platforms.