1. Brief analysis of how banks develop financing business for small and medium-sized enterprises and seek answers

This article briefly analyzes and thinks about how banks develop financing business for small and medium-sized enterprises. Keywords: Risks and benefits of direct financing channels for small and medium-sized enterprises in commercial banks 1. Development status of small and medium-sized enterprises Small and medium-sized enterprises are the basic force that promotes the development of our country's national economy, structures market economic entities, and promotes social stability, especially in ensuring moderate growth of the national economy, It plays an increasingly important role in alleviating employment pressure, rejuvenating the country through science and technology, and optimizing the economic structure. Since the reform and opening up, the development of small and medium-sized enterprises has been relatively rapid. It is reported that there are currently more than 10 million small and medium-sized enterprises officially registered in China, accounting for 99% of the total number of enterprises in the country; the value of final products and services created by small and medium-sized enterprises accounts for more than 50% of China's GDP, and the exports provided account for 60% , accounting for 43% of taxes paid and providing 75% of urban employment opportunities. Small and medium-sized enterprises have become an important part of the development of the national economy, playing 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 driving the economy. 2. The important strategic significance of developing small and medium-sized enterprise financial services for commercial banks. 1. The decline in the contribution of large customers is accelerating, and banks’ profit margins are gradually shrinking. (1) The level of fund management of large customers has generally improved. Large customers have basically established a capital network, and funds are intensively managed, resulting in a gradual decline in the share of large corporate deposits and loans in banks. (2) The financing capabilities of major customers have improved, direct financing channels have become unblocked, and demand for traditional loan business has grown insufficiently. For example, the rapid development of the short-term financing market has accelerated the pace of "financial disintermediation", and the traditional credit business of commercial banks is facing severe challenges. (3) The target markets of banks are similar. Fierce competition results in banks often being in a weak position in negotiations with large customers. They have weak loan bargaining power and low intermediary business income levels. Due to competitive pressure, the loan interest rates for many large customers of banks are currently at or below the benchmark interest rate. In particular, most of the customers of large monopoly groups have the benchmark interest rate dropped10, and the intermediary business of large customers is often driven by the pursuit of considerable loan spreads. No charge or less charge. 2. The contribution of small and medium-sized enterprises has gradually increased, and has increasingly become a strategic goal for the development of commercial banks. (1) Banks have strong bargaining power on loans to small and medium-sized customers and have high levels of intermediary business income, which has become a new profit growth point. According to survey data from the Zhejiang Branch of a state-owned bank, the bank's small and medium-sized enterprise loan balance accounts for 70% of the loan balance of corporate customers. The average SME loan interest rate is 20% higher than the benchmark interest rate, which is much higher than other loan income. 85% of the interest income from corporate loans comes from Small and medium-sized enterprises, including intermediary business, international business, credit card business, etc., are also the main force in generating income. (2) Disperse risks and increase liquidity. Commercial banks can diversify concentration risks by developing small and medium-sized enterprise financial services and make strategic adjustments to the credit asset structure and customer structure; at the same time, since most of the credit needs of small and medium-sized enterprise customers are short-term credit products, they should expand and develop products suitable for the characteristics of small and medium-sized enterprises. Short-term credit products are of great significance for adjusting asset structure and reducing the risk of asset-liability mismatch. (3) Rich resources, huge development space and potential. At present, there are a large number of small and medium-sized enterprises and individual industrial and commercial households, but the proportion of small and medium-sized enterprise customers in the total number of customers of various banks is very low, forming a large contrast. Therefore, there is huge space for the development of small and medium-sized enterprise resources and business. Dig and expand. 3. Analysis of the current financing situation of small and medium-sized enterprises and the reasons for loan difficulties 1. The imperfect credit system makes banks generally reluctant to lend. From a bank's perspective: safety, liquidity, and profitability are the basic requirements for bank loans, and small and medium-sized enterprises have experienced High operating risks create a natural barrier for banks to strengthen loan support for small and medium-sized enterprises. The life span of Chinese SMEs is very short. According to a large-scale sample survey of private enterprises across the country, the average survival period of private enterprises before 1993 was only 4 years, which increased to 7.02 years in 2000.

70% of small and medium-sized enterprises will be eliminated within 5 years after starting their business, while less than 10% of small and medium-sized enterprises with an operation period of more than 10 years will be eliminated. In this case, financial institutions are very cautious in lending to small and medium-sized enterprises. From an enterprise perspective: Many enterprises lack the concept of credit, do not pay attention to credit in transactions and financing relationships, and often intentionally default on loans. Coupled with the absence of local protection, government intervention and laws and regulations to punish dishonesty, it is difficult to avoid bank debts. The phenomenon is becoming increasingly serious. After an enterprise defaults, it is difficult for banks to recover the principal and interest of the loan, so they have to strengthen credit management and improve lending conditions, resulting in more hesitant behavior. 2. Insufficient effective guarantees and mortgages have become the primary obstacle to financing. More than 90% of the factory land used by small and medium-sized enterprises in my country is mostly collective land and homestead land. Real estate mortgage is a common guarantee method for banks to issue loans, and it is also an important way for guarantee companies to prevent loan risks. Due to the legal ambiguity of the subjects of collective land ownership (at least 3), it is difficult to determine the subjects of collective land ownership in practice. In addition, administrative power is often used instead of land asset management rights, which leads to the confusion of various subjects in the process of collective land transfer. The consequence of the “border” of land property rights is that it is difficult to mortgage collective construction land use rights. The "Security Law" clearly stipulates: "Houses and other fixed objects on the ground owned by the mortgagor can be mortgaged", and "the land use rights of township and village enterprises shall not be mortgaged separately. If the factories and other buildings of township and village enterprises are mortgaged, their occupied The land use rights within the scope are mortgaged at the same time." "Collectively owned land use rights such as cultivated land, homestead land, private land, and private hills cannot be mortgaged." The mismatch in mortgage between house ownership and homestead use rights has become a deadlock that makes it difficult for small and medium-sized enterprises to obtain financing, financial institutions to realize cash, and guarantee institutions to provide guarantees. 3. Credit management and operating environment risks: Insufficient information disclosure and distortion of financial data of small and medium-sized enterprises cause difficulties and falsehoods in bank pre-loan investigations. Our country's credit system and credit management for the whole society, including small and medium-sized enterprises, have not yet been formed. 4. The asymmetry between bank risks and returns reduces the enthusiasm of banks. Although some innovative small and medium-sized enterprises have a high failure rate, successful entrepreneurship will bring high entrepreneurial returns. But on the other hand, bank credit financing can only obtain fixed interest income, which means that the bank bears the financing risk and cannot share the high returns brought by the success of the enterprise, resulting in an asymmetry between bank risks and returns and reducing the bank's support for small and medium-sized enterprises. Motivation to take out a loan. 4 Main issues that commercial banks must solve to develop financial services for small and medium-sized enterprises 1. Bank value orientation and market positioning need to be adjusted. In the context of insufficient growth in demand for loan business from large enterprises, commercial banks must re-examine their market positioning and seek new business growth. Base. We should focus on "maximizing value" and adhere to the principle of matching returns and risks to develop small business financial services. We should use risk identification technology, default rate statistics, customer credit risk evaluation technology, etc. that are suitable for the characteristics of small businesses to avoid small businesses. While reducing corporate risks, we should improve our risk pricing capabilities, cover risks and costs by increasing prices, and ultimately reflect our efficiency goals. 2. Adopting the same operation and management mechanism as that of large customers is not suitable for small business financial business. It is difficult to carry out small business financial business with the existing "one size fits all" operation and management mechanism of large enterprise financial business. It is difficult to respond to the market correctly and quickly. It is also difficult to effectively prevent small business financial business risks.

2. What are the development ideas of banks’ corporate business?

The ideas are as follows:

First, establish a corporate business development leading group. Special classes are classified into large projects (large enterprises), medium-sized enterprises, and small and micro enterprises to promote breakthroughs in categories.

The second is to focus on business development of key enterprises based on the characteristics of regional economic development.

The third is to innovate credit business products and focus on investing in schools according to local conditions.

The fourth is to conduct classified assessments for each special class.

3. A brief discussion on how commercial banks develop credit business for small and medium-sized enterprises

1. Developing credit business for small and medium-sized enterprises is the most distinctive part of the bank’s credit customer base, and its credit needs cover fixed There are a large number of credit business accounts on and off the balance sheet such as assets and working capital. The single amount is small, the term is short, the demand for funds is urgent, the business occurs frequently, and the implementation of guarantee methods is difficult.

Leaders must attach great importance to it and improve the accountability system for post-loan management. The person responsible for post-loan management must come regularly to carefully analyze the company's financial reports, check the production status of products, inventory and fixed assets, and analyze and judge the risk status of credit assets. At the same time, it is necessary to understand the status of the industry in which the company operates, such as through on-site inspections, on-site discussions, communicating information with third parties, and other methods to promptly and accurately understand major changes in the borrowing company. (4) Pay attention to the training of loan officers. The characteristics of credit risks of small and medium-sized enterprises determine that lending banks must have high levels of operation and management and a strong sense of responsibility. This requires commercial banks to introduce and cultivate high-quality credit personnel who possess industry expertise and basic financial knowledge. In addition, a complete mechanism for the selection, training, assessment, reward and punishment of loan officers should be established to effectively strengthen the management and assessment of loan officers' performance of their duties. It is necessary to provide professional training and guidance to loan officers on a regular or irregular basis to increase communication opportunities between loan officers, so as to improve the professional capabilities of loan officers. Only by comprehensively improving the management quality of loan officers and providing them with regular training so that they can master more business knowledge, understand more national policies, and become familiar with the market information of various products can we truly minimize credit risks and truly Provide real-time early warning of loan risks. [2] Guan Min. Analysis of credit risk management of commercial banks in my country [J]. Coastal Enterprises and Technology, 2007 (3): 33-34.

IV. A brief discussion on how commercial banks develop small and medium-sized enterprises Credit business

1. Risk factors in developing credit business for small and medium-sized enterprises. As the most distinctive part of bank credit customer groups, small and medium-sized enterprises have credit needs that cover multiple on- and off-balance sheet credit businesses such as fixed assets and working capital. Variety, while having the characteristics of large number of customers, small single amount, short term, urgent demand for funds, frequent business occurrence and difficulty in implementing guarantee methods. Small and medium-sized enterprises are generally in the entrepreneurial and growth stages, and there are some risk factors to varying degrees. Therefore, they have attracted great attention from major banks. (1) Management risk factors Most small and medium-sized enterprises have incomplete corporate governance structures, imperfect organizational systems, and lack of managers who are proficient in modern enterprise management concepts. Most business owners and managers lack the necessary theoretical foundation or necessary practical experience in the operation and management process. The overall quality of personnel and the degree of job specialization are low. Their ability to grasp the market and the execution and control of the organizational structure are very limited. Weak ability to resist systemic risks. (2) Market risk factors: Small and medium-sized enterprises themselves are relatively weak and lack working capital. They do not pay enough attention to product market research and the establishment and expansion of marketing channels. They invest less funds and are difficult to obtain comparative price advantages due to the limitations of their business scale. There are obvious flaws in the liquidity of funds, and the overall ability to withstand market shocks is relatively weak. (3) Financial risk factors The financial system of small and medium-sized enterprises is not standardized. The financial management of most enterprises is still in the accounting stage, and the role of financial management and cost accounting has not been fully exerted. It is common for financial statements to have poor authenticity, arbitrariness, and low transparency. They inflate costs for tax avoidance, cash income is not recorded in accounts, and profits are inflated for financing or corporate image. Current situations such as chaotic financial management and information asymmetry directly affect banks' judgments about enterprises. (4) Credit risk factors Small and medium-sized enterprises have various types of ownership, the quality of management personnel is uneven, and there are widespread integrity problems among enterprises. Enterprises deliberately commit fraud to obtain bank loans and maliciously evade bank debts. This has made it difficult for banks to assess the credit status of small and medium-sized enterprises. Evaluate. 2. Problems existing in commercial banks in expanding credit business for small and medium-sized enterprises (1) The concepts and awareness of risk management are lagging behind. my country’s commercial banks were born out of the planned economy system. The business operations of commercial banks are highly administrative and the market-oriented operation mechanism has not been fully developed. Establish. In the process of business operations, small and medium-sized enterprises have not been regarded as potential customers for a long time, and credit risk assessment and management of small and medium-sized enterprises have not been paid attention to in terms of business concepts and awareness.

In particular, the main service targets of the corporate credit business of state-owned commercial banks are large customers and large projects. The formulation of operating management and risk control systems and policies has always been designed and implemented around large customers and large projects. The organizational structure, resource allocation, Risk management, incentive mechanisms, customer evaluation systems, business processes, etc. are all formulated for large customers and large projects. There is insufficient understanding of the risks of small and medium-sized enterprises from a strategic perspective, and insufficient research on product design and risk measurement tools, resulting in credit risks. Management lags behind business development, resulting in a high proportion of non-performing assets. (2) Restrictions in the loan operations of commercial banks to small businesses. In terms of rating and credit granting to small businesses, the credit rating process for small businesses is basically the same as that for other legal person loans. However, based on the growth and development characteristics of small businesses, There is a big gap between mature large enterprises. Therefore, in the current credit rating, because small enterprises do not have an advantage in asset strength indicators and financial indicators, while small enterprises have advantages in growth and technical indicators and have relatively low weight, they eventually form a small enterprise. Enterprise rating assessments are generally poor; in terms of small business loans with pledge guarantees, even if the basic materials are verified and the risk is very small, the procedures required by commercial banks are relatively complicated and the operation cycle is relatively long; In terms of some specific business guidance, the operability is not strong. Especially for some new businesses, the specific operating details and precautions are not clear enough, causing account managers to be at a loss in specific operations. 3. Suggestions for commercial banks to improve small business credit risk management and control (1) Establish long-term loan relationships Commercial banks’ loan decisions are mainly made through long-term and multiple channels of contact with relevant information about lending companies and their owners. Because various soft information generated by long-term relationships can largely replace hard information such as financial data, partially make up for the credit gap caused by small businesses’ inability to provide qualified financial information and collateral, and help improve their disadvantages. credit terms. Commercial banks' loans to small businesses should focus on long-term interests. Under the current interest rate control conditions, loans to small businesses are priced at low prices and cannot compensate for their risks. This will certainly reduce the enthusiasm of commercial banks for lending to them. However, if commercial banks select some corporate loans with growth potential and establish good financial and business cooperation relationships with them, they can lay the foundation for obtaining higher loan returns after interest rate liberalization in the future. (2) Carry out business innovation based on the characteristics of small businesses, expand the application space of existing financial products, and develop supporting and applicable financial products. Commercial banks should increase the variety of financial products and more conveniently use modern financing tools to obtain benefits for commercial banks. (3) Strengthening post-loan management Post-loan management is a key link in credit risk supervision and the last step in credit risk prevention, and must be carefully and strictly controlled. Be high in leadership