ABSTRACT
As the development and improvement of Chinese market economy, the role of of
Small and Medium Enterprises (SMEs) becomes more and more important in
stabilization and promotion of economic development. Our government and related
financial institutions announced on many occasions in public that society should support
the development of SMEs, and the bottleneck of SMEs’ development — — financing
difficulty, has been concerned by society.
In China, influenced by histry and social environment, bank loan is still the main
source of external funds for SMEs. However, banks will face growing Credit Risks to
expand financial support for SMEs because of their weak fundation and backwardness
of technology and management, including the high operational risks of SMEs. As a
result how to meet the financial needs of SMEs as well as to control the Credit Risk of
banks effectively becomes the topic of this article ——The Research in Running Model
of SMEs Credit System.
The article first discusseses the histry and the loan evolution of Chinese SMEs and
analyzes their loan characteristics. By studying the characteristics of credit system and
running model of SMEs in the United States and Japan, we can learn much about how
to improve the loan credit system by comparison. On this basis, we put forward thought
of improvement credit model of the SMEs on account of the features for SEMs credit
and the unique context of Chinese banks, which include: using mathematical knowledge
to innovate the Credit Rating System and establish a new way of credit assessment of
the SMEs; using Stiglitz and Weiss model and the Capital Asset Pricing Model to work
out the range of loaning rates for SMEs; using foreign credit management to improve
the control of the credit risk for the banks. To develop the SMEs credit needs
multi-aspect and multi-level support, and Chapter V of this article discusses
strengthening financial supervision, improving the credit guarantee system for SMEs,
establishing and improving the information database for SMEs, developing the group or
collaboration of SMEs, and proposes how to innovate our society service system for
SMEs in order to protect the development of SMEs.
How to support the development of SMEs and solve their financing problems need
national policies favor and social assistance, multi-channel, multi-level financial support