Research On The Impact Of Banking Competition On The Financing Constraints Of Small And Medium-sized Enterprises

Today,in the context of financial liberalization,the role of small and mediumsized enterprises is becoming increasingly important and has become an important cornerstone for optimizing the industrial structure,improving the quality of economic growth and international competitiveness.However,SMEs have their own problems,such as short operating hours,unstable senior management teams,and hollowing out by managers,coupled with information asymmetry,continuous financial repression and a financial environment with more policy intervention,SMEs have more serious financing difficulties.As a widely relied financing channel for small and medium-sized enterprises,bank lending plays an inestimable role,so the change of the competition pattern of the banking industry is bound to have an impact on the financing constraints of small and medium-sized enterprises.On the basis of a large number of literatures,this thesis takes China’s small and medium-sized board non-financial enterprises as the research object,and mainly studies the following three key issues:(1)Whether there are serious financing constraints for small and medium-sized enterprises in China,and what are the main reasons for the financing dilemma?(2)In the current fierce competition in the banking industry,all kinds of banks are expanding the scale of branches and branches,in this environment of bank competition,can the financing constraints of SMEs be alleviated,and what is the mechanism for SMEs to be affected?(3)From the perspective of SMEs,there are differences in the financing problems of SMEs of different natures,so how will these differences change in the face of external factors of banking competition?In this study,after analyzing the relevant current situation,a multiple regression model was constructed for empirical research to explore the conclusions of the research questions.The main conclusions of this thesis are:(1)At present,China’s small and mediumsized enterprises do have a relatively serious financing dilemma,mainly because the small enterprises themselves have weak information recognition capabilities,low information disclosure and financial disclosure capabilities,and it is difficult for banks to identify through public information,in order to avoid credit risks,it will reduce the scale of lending to small and medium-sized enterprises,or increase the financing cost to small and medium-sized enterprises.(2)Competition in the banking industry can alleviate the financing difficulties of small and medium-sized enterprises,in order to seek their own development prospects,banks will reform their own products and business direction,actively tap the enterprise information of small and medium-sized customers,break the information barriers of start-ups,innovate financial products and services,accelerate the process of marketization,broaden the credit opportunities given to small and medium-sized enterprises,balance the service and financing costs of both parties to the transaction,so as to better serve small and medium-sized enterprises.(3)Under the competition of different types of SMEs in the banking industry,the impact effect of financing constraints is different.High-tech enterprises are subject to certain policy tilts,compared with ordinary enterprises can obtain more financing relief,the financing problems in the eastern developed region are indeed lighter than those in the western region,reflecting a higher sensitivity in the situation of bank competition,at the same time,as an important economic participant,private small and medium-sized enterprises have obtained better financing relief in bank competition.Based on the above conclusions,this study has obtained a series of enlightenment.First of all,SMEs themselves should continuously improve their internal governance structure and financial information leakage,accelerate the process of digitalization while continuously improving their operation and management capabilities,break through the information barriers of one-way service of banks,build a bridge between banks and enterprises,and actively provide potential value information of enterprises.so as to reduce the cost of credit financing and reduce the difficulty of credit financing.Secondly,to encourage appropriate competition among banks,stimulate the market vitality of various financial institutions,according to the "optimal financial structure"hypothesis,it is necessary to build a multi-level,wide-coverage and differentiated banking system,in addition to advocating banks to carry out innovative research and development of financial products,and provide targeted services for small and mediumsized enterprises and other financing difficulties.Finally,the government needs to use appropriate policies and systems to support small and medium-sized enterprises,guide financial institutions to provide financial support services,such as establishing professional small and medium-sized enterprise guarantee institutions to improve the creditworthiness of small and medium-sized enterprises,issuing strict assessment mechanisms to encourage small and medium-sized enterprises to strengthen internal management and financial supervision,and promoting smooth cooperation between the two sides of credit services,so as to promote the financial industry to better serve the real economy.