Study On Symbiotic Relationship Between Local Banks And SMES, Residents

In order to solve the problem of financing SMEs, the key lies in the role of local banks such as city commercial banks, rural cooperatives and rural banks. Compared to national banks, local banks have the advantage on information, cost and efficiency in serving SMEs and local residents. However, many local banks actually do not regard SMEs as their main customers and instead focus on large corporate lending business, which deviate from their original intention.Firstly, this paper provides an overview of symbiosis theory and local banks. Then it found that local banks match the local SMEs and residents best in terms of five necessary conditions for the formation of symbiotic relationship. Then with the data of Zhejiang, this paper uses symbiotic degree to analyze the relationship between local banks and SMEs and found that there was no significant symbiotic relationship between them.This paper analyzed the reason of this result from local bank itself, symbiosis object, symbiosis model and symbiosis environment. After that two successful cases-Ganzhou Yinzuo rural bank and American community banks were studied.Finally, this paper offered suggestions in terms of the local banks, symbiosis object, symbiosis model and symbiosis environment. The local banks should subjectively regard the SMEs as their main customers and launch product innovation, improve the compatibility of quality parameters, pay attention to the build of personnel to strengthen the ability of collecting soft information. And we should also improve the credit consciousness of local SMEs and residents, the competitiveness of enterprises and reliability of financial reports. From the view of symbiosis model, local banks could achieve mutual benefit and win-win by lowering the loan rate according to the deposit, provide free consultation and support the build of community. Lastly, we should optimize the credit environment, establish deposit insurance system and provide more policy support.