Research On Credit Factory Mode Of Small And Micro Enterprise Basing On The Bank Of China In Hunan Province

Small and micro enterprises, as an important part of market economy in China, play an indispensable role in China, contribute to the national revenue and the prosperity of job market, and are the powerful foundation of promoting social innovation. However, they have experienced an arduous journey during their development. The difficulty of financing and the lack of working fund needed for operation cause the hardship. Simultaneously, with the liberalization of our interest and financial disintermediation, the innovation and renovation of commercial banks credit business is imperative. Therefore, the study of credit problems for small and micro enterprises is of great significance both for the growth of small and micro firms and for the transformation of commercial banks theoretically and practically.The study logic of this paper is from theory to practice. The financing situation for small and micro corporations, in theory, characterizes "shortness", "frequency", and "quickness", yet they correspond with the defects in relatively simple administration, unsound financial system and inadequate security in valid. The mode of credit factory, adopting assembly line work and standardized operation, owns the advantage of financing small micro enterprise in a short time period, which offers the rationale for credit factory pattern in the application of the credit of small and micro companies. In practice, against the backdrop of undertaking its social responsibility and the structure adjustment of banking industry, Bank of China, Hunan province (branch) has introduced credit factory pattern of credit for small and micro enterprises and achieved remarkable progress over the past two year, which has taken out 352 loans, all of them with good asset quality and non-performing loans and interest loans under the controllable scope.Bank of China, Hunan province (branch) selects its clients from two dimensions-industry selection and customer selection. Industry selection, in principle, requires to choose the outstanding industries whose contribution of GDP remains the top ten regionally; Customer selection mainly emphasizes choosing clients that belongs to middle and high-end customers and the related clients of large-scale enterprises. Credit factory pattern for small and micro enterprises of Bank of China, Hunan province (branch) standardizes the procedure and process of this pattern, create a comprehensive service mode for products, attaining dynamic management, unified credit management, standard management, clear duty management and active risk management.In the view of success and failure of credit factory pattern for small micro enterprise credit factory of Bank of China, Hunan province (branch), the pattern wholly develops the merits of efficient approval, high profits and mass marketing. But it also faces the difficulty of high data requirement and professional team. Therefore, it is suggested that this pattern can be optimized through strict customer screening mechanism, strengthening credit due diligence before and after the loan risk management and strengthening the construction of professional team.