Study on Credit Financing Problem of SMEs in China
|Keywords||Credit Rating SMEs Commercial Bank Logit|
After 2009, due to the implementation of very loosely monetary and credit policy, financing difficulties are relieved temporarily. But since 2011, because of repeatedly record-high CPI, monetary tightening has become the regular, which resulted in more urgent of SMEs financing difficulties. From the situation in recent years, the financing difficulties of SMEs are in the dual nature, that is not only difficult for SMEs to obtain bank loans, the banking financial institutions lending to SMEs are also facing the difficult dilemma. This "dilemma" difficulties, if not resolved as soon as possible, not only the development of SMEs will be inhibited, the pace of national economic growth will be affected, while is also unfavorable to the healthy development of commercial banks.On the one hand the financing demand is vigorous, and insufficient supply on the other. To increase supply is an effective way to ease the dilemma. While supply increasing, the risk is also increased obviously. How to effectively prevent risks while increasing supply is particularly important. Credit rating, as the core of the banking credit risk management, can serve as a professional risk discoverer, and is more and more used in the holistic risk management. At present, most of the commercial banks in China, which is the main source of SMEs indirect finance, do not categorize companies by scale when analyzing and assessing the credit risk of SMEs, but use the standards for large and medium sized enterprises. Without professional and advanced risk assessment system, the credit business of SMEs cannot receive scientific, just and professional rating, and consequently cannot have an objective and effective assessment of credit risk.Based on the above mentioned background, this thesis analyses and studies the commercial bank credit rating of SMEs. It aims to analyze the current status and problems existing in the credit rating and risk management among SMEs through a systematic summarization on the advantages and disadvantages of the credit rating theories and methods abroad, and to explore a credit rating system adapting to the features of China’s SMEs and the reality of domestic commercial banks and propose relevant policy recommendations, through an empirical analysis of credit loan data from a certain commercial bank in China.This thesis has main innovations as below:Theoretical analysis:this thesis makes an exhaustive summarization of the advantages and disadvantages of all kinds of credit rating theories, models and methods, and displays the comparison in a list. Up to today, no summarization like this is seen at home. Furthermore, it also conducts beneficial probes into the defining standard of SMEs.Empirical analysis:regarding the problems existing in the current empirical analysis, this thesis makes innovative attempts as follows:(1) Redefines the SMEs to make the samples selected in more accordance with the current status of the domestic SMEs. And till now, no researches are known of making empirical analysis based on statistics of SMEs credit loans at banks.(2) Increases indices reflecting the development and growth capability and profitability of SMEs, and makes empirical analysis through multiple discriminant model and Logit model. The existing domestic researches are mostly made on basis of theoretical analysis, lacking empirical analysis on banks data for the SMEs. The result basically proves the above theoretical analysis, i.e. the growth and development capability and profitability indices have prominent impact on the credit status of SMEs.(3) The empirical analysis models used in this thesis are all completed by industry. The current domestic researches mostly have no subdivision of industries, and have no empirical test of whether credit rating has important impact on the breach of faith. The result of empirical test in this thesis also proves the necessity of subdivision of industries.