A Study On Funds Raising Risk Control Of Small&Medium Size Enterprises For GD Bank

As one of the most vigorous elements in Chinese economic system, small and medium size enterprises play an elementary role in accumulating economy growth, achieving technology innovation, and providing varieties of jobs. It is the financing difficulty, however, that restricts the leapfrog development of the small and medium size enterprises severely. This phenomenon emerges as a global problem, not just in China. Nowadays, Chinese small and medium size enterprises get financing mainly by granting loans from commercial banks. They face the plight that their huge financing need meets scare channels in market, while commercial banks are worried about the difficulty of managing risks, which are caused by lending loan to small and medium enterprises, effectively. Thus, how to solve this dilemma is of importance and of meaning.Based on the predecessors’ research, this paper studies the China GD bank managing and controlling the funds raising risks of small and medium size enterprises by summarizing the channels of the small and medium enterprises financing and their characteristics and analyzing Chinese commercial banks financing risks by loaning to the small and medium size enterprises. Understanding the foundation of the basic system establishment principals, this paper focus on the China GD bank specialized small and medium enterprises services so as to show the features and efficiency of its risk control system. This paper, following the above, describes the methods corresponding to the risk control system to ensure its successfully works.Finally, this paper dedicates two novel results. First, optimization the check and approve process, creating specialized small and medium enterprises services and consummate bank organization helps effectively manage and control the fund raising risks by small and medium size enterprises. As the above core elements have been achieved, commercial banks are able to establish effective risk control system, which enables them to provide better loan services. Second, the conclusion questions the traditional “small and medium size financial organization superiority” opinion.