Research On Strategic Transition Of A Bank Financing Business In Small And Medium-sized Enterprises

As the development of economy,the amount of SMEs in our country accounts for over 99% of the total number of enterprises in the country,which has solved over 75% of the total employment volume in the whole country.And it's difficult for domestic SMEs to get direct finance through stocks or bonds.The main financing channels are bank loans as well.Besides,it's well known that national policies have always been of concerned for the support of real economy and SMEs.However,SMEs receive only 12% of their regular capital from banks,even with the fierce demands from markets and the support of national encouragement.In addition to short of fixed assets and collateral assets,lack of risk guarantee,low credit rating scores and some other natural problems,SMEs stay in the condition of low risk tolerance.And commercial banks also have some problems in traditional SME finance and risk control model.Nowadays,commercial banks have to consider not only risk control but also profit income.How to expand the scale of bank finance to SMEs under the premise of risk control and how to realize the sustainable development of SMEs with banks have become the focus to commercial banks.In this paper,based on the concept and theory in financing for SMEs,and strategic transition of enterprises,the paper studies the existing modes,present problems and causes of traditional financing models in SMEs.And this paper analyses the Bank A's current status in financing to SMEs,conclude a new model in financing SMEs,and make a detailed strategic transition programs and plans.This study argues that,bank A should adopt the supply chain finance to develop the SMEs finance,taking use of emerging technologies such as the internet and block chain to grasp the actual operation between core enterprises,upstream and downstream enterprises.And with this method bank A connects logistics,capital flow and information flow,relying on the risk of core business,increasing bank's understanding of risk and real condition to upstream and downstream enterprises,and finally help bank A to make bigger and stronger SMEs financing business.