Research On Credit Product Innovation Of Commercial Banks Serving Small And Micro Enterprises

With the Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China proposing the development of Inclusive Finance as a national strategy,the government has raised its attention to the growth of small and micro enterprises to an unprecedented height.Small and micro enterprises are an important part of China’s real economy.There is a symbiotic relationship between commercial banks and China’s real economy.Small and micro enterprises are the most important part of this relationship.Developing credit for small and micro enterprises is the social responsibility of commercial banks.On the basis of summing up the previous research results and explaining the relevant theories,this paper analyses the motivation of credit product innovation of small and micro enterprises,the course of product innovation and the current situation of micro-credit product innovation of state-owned commercial banks and joint-stock commercial banks;through the analysis of the credit model of internal banks,the credit model of joint third party and the financing guarantee model supported by the government,etc.Based on the analysis of the innovation mode of micro-enterprise credit products,this paper summarizes the key problems that commercial banks in China need to solve in the innovation of micro-credit products based on the mode,and uses relevant theories to solve the problems of information asymmetry,interest rate pricing and cost,credit risk in micro-credit.At present,China Merchants Bank’s financial innovation is at the forefront of commercial banks,and "business loan" is an innovative product launched by small and micro enterprises,including mortgage loan,one-off double loan,POS merchant loan,supply and sale flow loan,old customer credit,micro-credit six products.Through case study,this paper finds that the information screening,approval efficiency,risk management and loan cost of business credit products have advantages over traditional credit products.However,with the development of China Merchants Bank’s micro-credit business and the promotion of business credit products,there are some problems such as lax customer quality screening,high credit risk and imperfect sales process.Although various credit products have been developed for different customer groups,there is a lack of product awareness and gradient division according to the stage of enterprise development.According to the deficiencies of business credit,this paper puts forward some suggestions on the innovation of credit products for small and micro enterprises of commercial banks in China.The research showsthat the credit market of small and micro enterprises has great potential for development,and it is also the direction of future transformation of commercial banks.The series of "business credit" products provide reference for the innovation of credit products of small and micro enterprises of commercial banks in China.