Research On The Development Strategy Of SME Credit Of Hangzhou Branch Of China Merchants Bank

Small&Medium Enterprises (SME) play an important role in Chinese economy, which also contributes for sustainable economic development and social prosperity and stability in China. Development of SME attracts more public attention, and various financial institutions focus on financial services for SME. China Merchants Bank has clear market strategies on business development of SME. It will be one of the main works for China Merchants Bank Hangzhou branch to offer long-term service for SME in future. To have an appropriate strategy on how to develop credit business for SME brings great benefit to the development of China Merchants Bank Hangzhou branch. It also contributes for better service for SME.This thesis firstly sort the research of current financing business in SME at home and abroad. In addition, this thesis makes investigation and analysis on current situation of SME development and their credit business in Zhejiang province; Combining theory and reality, it points out main difficulties that SME in Zhejiang Province facing at present through analysis on development process, financing mode and features of SME and general situation of service offered by financial institutions to SME. The research shows that due to special economic characteristics and market combination in Zhejiang Province, current financing business in SME in Zhejiang Province has following features: many loans from individuals; many cross guarantee, high financing cost and financing method is single. SME in Zhejiang Province face current main difficulties on financing are total amount of loan in enterprises is little and takes low proportion. Bank loan doesn't cover a lot of enterprises and. On this basis, the paper in-depth study Hangzhou branch of China Merchants Bank SME credit business development status and existing problems, and targeted make relevant policy recommendations of Hangzhou Branch of China Merchants Bank SME credit business. The study suggest that in recent years, although the development of Hangzhou Branch of China merchants Bank SME credit business has achieved good results, but on product innovation, loan price and method, authority approval, risk management, assessment and incentive measures need to be further improved. The next step of Hangzhou Branch of China Merchants Bank should focus on following four aspects of purpose to improving the work of credit for SMEs:fit Zhejiang economic characteristics, fully consideration of the majority needs of SMEs, focus and based on Hangzhou Branch of China Merchants Bank business development and competitive demands, and better service in Zhejiang economic. Specific measures to improve are:speed up financing product innovation for SME; set up product system which fits SME; establish scientific and reasonable loan price system; build proper credit approval process and risk management system; focus on development of good SME customers and customer managers'growth; improve assessment and encouragement system; complete responsibility system.