Analysis on how banks develop financing business of small and medium-sized enterprises

This paper analyzes and thinks about the financing business of small and medium-sized enterprises in banks. Keywords: 1 risks and benefits of direct financing channels for small and medium-sized enterprises in commercial banks. The development of small and medium-sized enterprises is the basic force to promote the development of China's national economy, build the main body of market economy and promote social stability, especially in ensuring moderate growth of the national economy, alleviating employment pressure, rejuvenating the country through science and technology and optimizing the economic structure. Since the reform and opening up, small and medium-sized enterprises have developed rapidly. It is reported that the number of SMEs officially registered in China exceeds100000, accounting for 99% of the total number of enterprises in China; The value of final products and services created by small and medium-sized enterprises accounts for more than 50% of China's GDP, 60% of exports, 43% of taxes and 75% of urban employment opportunities. Small and medium-sized enterprises have become an important part of national economic development, and have played an irreplaceable role in absorbing labor, promoting market competition, facilitating people's lives, promoting technological innovation and promoting economic development. Small and medium-sized enterprises have become a new growth point to stimulate the economy. Second, the development of financial services for small and medium-sized enterprises is of strategic significance to commercial banks. 1. The contribution of major customers decreased rapidly, and the profit margin of banks gradually narrowed (1). The fund management level of major customers has generally improved. Large customers have basically established a capital network, and the intensive management of funds has led to a gradual decline in the share of deposits and loans of large banks and enterprises. (2) The financing ability of large customers has been improved, the direct financing channels are smooth, and the demand for traditional loan business is insufficient. For example, the rapid development of short-term financing market has accelerated the pace of "financial disintermediation", and the traditional credit business of commercial banks is facing a severe test. (3) The target markets of banks are converging, and fierce competition leads to banks being in a weak position in negotiations with major customers, with weak loan bargaining power and low income level of intermediary business. Under the pressure of competition, the loan interest rates of many big customers of banks are below the benchmark interest rate, especially the monopoly group customers are mostly down 10%, and the intermediary business of big customers often does not charge or underpays because of pursuing considerable loan spreads. 2. The contribution of small and medium-sized enterprises has gradually increased, and it has increasingly become the strategic goal of the development of commercial banks (1). Banks have strong bargaining power for loans to small and medium-sized customers, and the income level of intermediary business is high, which has become a new profit growth point. According to the survey data of Zhejiang Branch of a state-owned bank, the loan balance of small and medium-sized enterprises accounts for 70% of the loan balance of corporate customers, and the loan interest rate of small and medium-sized enterprises rises by an average of 20% on the benchmark interest rate, which is much higher than other loan income. 85% of the interest income of enterprise loans comes from small and medium-sized enterprises, and small and medium-sized enterprises in intermediary business, international business and credit card business are also the main force to generate income. (2) Disperse risks and increase liquidity. Commercial banks can spread the concentration risk by developing the financial business of small and medium-sized enterprises, and make strategic adjustments to the credit asset structure and customer structure; At the same time, because the credit demand of SME customers is mostly short-term credit products, it is of great significance to expand and develop short-term credit products suitable for SMEs to adjust asset structure and reduce the risk of asset-liability mismatch. (3) Rich resources, great development space and great potential. At present, there are a large number of small and medium-sized enterprises and individual industrial and commercial households, and the proportion of small and medium-sized enterprise customers to the total number of bank customers is extremely low, forming a great contrast. Therefore, the huge resources and business development space of small and medium-sized enterprises need to be tapped and expanded. Three. Analysis of the financing situation of small and medium-sized enterprises and the reasons for the difficulty in lending 1. The imperfect credit system makes banks generally reluctant to lend. From the bank's point of view, security, liquidity and profitability are the basic requirements of bank loans, and the high operational risks of small and medium-sized enterprises make them a natural barrier for banks to strengthen their loan support for small and medium-sized enterprises. The life span of SMEs in China is very short. According to the large-scale sampling survey of private enterprises in China, before 1993, the average duration of private enterprises was only 4 years, which increased to 7.02 years in 2000. 70% of SMEs will be eliminated within five years after starting a business, while less than 10% of SMEs have been operating for more than10 years. In this case, financial institutions are cautious about SME loans. From the point of view of enterprises, many enterprises lack the concept of credit, don't talk about credit in the relationship between transaction and financing, and often deliberately default on loans. Coupled with the absence of local protection, government intervention, dishonesty punishment and other laws and regulations, the phenomenon of evading bank debts is becoming more and more serious. After the enterprise defaults, it is difficult for banks to recover the principal and interest of loans, so they have to strengthen credit management and improve lending conditions, which leads to widespread reluctance to lend. 2. Lack of effective mortgage guarantee has become the primary obstacle to financing. More than 90% of the workshop land of small and medium-sized enterprises in China is mostly collective land and homestead. Real estate mortgage is a common guarantee method for banks to issue loans at present, and it is also an important way for guarantee companies to guard against loan risks. Due to the legal ambiguity of the subject of collective land ownership (at least three), it is difficult to determine the subject of collective land ownership in practical work. In addition, administrative power is often used to replace the management right of land assets, which leads to the "border dispute" of land property rights of all subjects in the process of collective land circulation, and as a result, the right to use collective construction land is difficult to mortgage. The "Guarantee Law" clearly stipulates: "The houses owned by the mortgagor and other things fixed on the ground can be mortgaged" and "the land use right of township enterprises cannot be mortgaged separately. If buildings such as factories of township enterprises are mortgaged, the land use rights within their occupied areas shall be mortgaged at the same time. " "Cultivated land, homestead, private plots, private plots and other collectively owned land use rights shall not be mortgaged". The misplacement of housing ownership and homestead use right in mortgage has become a deadlock for small and medium-sized enterprises to raise funds, financial institutions to realize cash and guarantee institutions to guarantee. 3. Credit management and business environment risks Inadequate information disclosure and distorted financial data of SMEs make it difficult and untrue for banks to conduct investigations before lending. China's credit system and credit management for the whole society, including small and medium-sized enterprises, have not yet formed. 4. The asymmetry of risk and income reduces the enthusiasm of banks. Although some innovative small and medium-sized enterprises have a high failure rate, successful entrepreneurship will bring high entrepreneurial income. On the other hand, bank credit financing can only obtain fixed interest income, that is to say, banks bear the financing risk and cannot share the high income brought by the success of enterprises, which leads to the asymmetry of risks and income of banks and reduces the motivation of banks to lend to SMEs. 4. The main problems that commercial banks must solve in developing the financial industry of small and medium-sized enterprises 1. The value orientation and market orientation of banks need to be adjusted. Under the situation of insufficient demand for loan business of large enterprises, commercial banks must re-examine their own market positioning and seek new business growth bases. We should focus on "maximizing value", adhere to the principle of matching income with risk, apply risk identification technology, default rate statistics and customer credit risk assessment technology suitable for small enterprises to avoid small enterprise risks, improve risk pricing ability, cover risks and costs through price increase, and finally reflect the benefit goal. 2. Small businesses should not adopt the same management mechanism as big customers. The existing "one-size-fits-all" management mechanism for financial business of large enterprises is difficult to respond correctly and quickly to the market and effectively prevent financial business risks of small enterprises. First of all, it shows that the risk pricing ability of small enterprises is not strong, which does not reflect the business characteristics of small enterprises, such as large risk, large personalized difference and high cost. Secondly, the assessment and accountability system does not conform to the objective reality and market law of high risk and high loss rate of small enterprises, and lacks the incentive mechanism of "responsibility, power and benefit"; Third, most of the resources are allocated to large customers and projects, and the advantages of bank outlets have not been fully exerted. From the perspective of financial cost accounting, if only large projects are built, the resulting costs cannot be fully amortized. 3. Lack of institutional and policy arrangements for small enterprises First of all, the biggest feature of small enterprises in financing is information asymmetry with banks, and there are widespread problems such as distortion of financial statements and lack of credit. Therefore, the current customer evaluation system based on enterprise financial statements is not suitable for the characteristics of small enterprises, and the customer evaluation system following the unified model of large customers can not reflect the real risks of customers, and it is difficult to accurately identify customer risks. Secondly, it is not suitable for the characteristics of small enterprises to adopt the same credit operation process as large enterprises. The financing demand of small enterprises has the characteristics of small amount, urgent demand and fast turnover. Compared with the wholesale business of large enterprises, small enterprises have a large number and a wide range. These characteristics of retail business determine that the business center of banks to develop small enterprise financial business must move down. Only by being close to the market and customers can we know the real information, respond quickly and effectively prevent risks. Third, there is a lack of targeted products. Products, like large enterprises, are difficult to meet the short, flat and fast financing needs of small enterprises. V. Suggestions of commercial banks on developing financial services for small and medium-sized enterprises 1. Credit resources should be prioritized, and "preferential support" is the policy orientation that banks should adhere to (1). We are used to referring to medium-sized enterprises and small enterprises as "small and medium-sized enterprises" without discrimination. In fact, the contribution of medium-sized enterprises and small enterprises to banks and the quality of loans are very different. Medium-sized enterprise loans are obviously better than small-sized enterprise loans. (2) Focus on supporting small and medium-sized enterprises in industrial clusters. Industrial clusters are often the leading industries in a region, leading the local economic vitality, mainly small and medium-sized enterprises, and are the main targets of employment, so local governments give full support to industrial clusters. Small and medium-sized enterprises in industrial clusters are "rooted" in this region, that is, they rely on specialized markets, cooperative suppliers and familiar customers, and cannot do without this region with industrial cultural background and institutional environment, so they are generally more willing to engage in this familiar industry than other industries. (3) Focus on supporting small and medium-sized enterprises such as joint-stock enterprises, private enterprises and foreign capital. According to the investigation and analysis of the loan situation of several commercial banks, the risks of enterprises with different ownership systems are also very different. The best loan quality is joint-stock enterprises, followed by private enterprises, then state-owned enterprises, collective enterprises and other enterprises (mainly individual industrial and commercial households). 2. Strengthen product and service innovation, expand financing channels, and strive to meet the all-round and multi-level financial service needs of SMEs. Select enterprises with good credit standing and stable production, supply and marketing conditions, issue and use financing instruments such as commercial acceptance bills and bank acceptance bills, handle discount, rediscount and rediscount business, and support enterprises to expand bill financing. Provide movable property pledge loan and brand pledge loan service for qualified small and medium-sized enterprises. Actively introduce mature financing methods of western commercial banks, and handle secured payment agency, secured bill purchase, forfaiting and other businesses for qualified small and medium-sized enterprises, so as to adapt to the development of domestic and foreign unified markets and the multi-level financing needs of enterprises. We should make full use of the information advantages, network advantages and convenient conditions of banks to provide various information consulting services for small and medium-sized enterprises. At present, China Construction Bank has launched a series of innovative financial products for small and medium-sized enterprises, such as "Quick Loan Link" and "Road to Growth". 3. Measures to Strengthen the Prevention of Credit Risks of SMEs (1) We should strengthen the examination of the personal qualities of the legal representatives of SMEs with credit needs, and pay special attention to the examination of the legal representatives and key managers who work part-time outside the home, the cooperative relationship with other family members, the distribution of private property, whether there are any illegal acts in history and the personal credit records of banks, so as to effectively prevent moral hazards. (2) It is necessary to deepen the pre-loan investigation of SME customers, improve the ability of risk identification, and especially strictly examine the financial statements and financial conditions. We can check it from two aspects: on the one hand, we can audit the financial statements of customers with the help of special intermediaries and ask for audit reports; On the other hand, through the bank credit rating software system to audit the financial statements, analyze and judge the authenticity and profitability of their financial statements, and fully reveal their financial risks. (3) Adopt various guarantee methods to enhance the loan guarantee ability. Lack of collateral and difficulty in obtaining credit guarantee are the inherent characteristics of financing difficulties for SMEs. In order to solve this problem, commercial banks can explore other alternative guarantee methods: first, change enterprise guarantee into individual guarantee; The second is group guarantee; Effectively reduce the cost of bank supervision and even increase the transaction cost; Third, sign a savings deposit agreement with customers; The fourth is to strive to make good use of policy guarantees. (4) Improve and perfect the credit management mechanism of commercial banks, and improve the service level and efficiency. All commercial banks should further improve the credit rating and credit granting system for small and medium-sized enterprises, establish and improve credit rating methods that meet the characteristics of small and medium-sized enterprises, and objectively evaluate their credit ratings. Expand the credit coverage of small and medium-sized enterprises, make the credit situation basically meet the reasonable loan needs of small and medium-sized customers, and continuously improve the quality, level and efficiency of credit approval. (5) Strengthen the liquidity management of bank assets. The loan quality, variety and term of SMEs will have an important impact on the liquidity of bank assets. Banks should design special loan methods and repayment methods according to the characteristics of small and medium-sized enterprises' credit demand, such as flexible use and repayment like consumer credit, which puts forward higher requirements for bank liquidity management. Related hot words: financial paper financing business