Paper Infomation
How does Development of Small and Medium-sized Banks Influence Financing Constraints of SMEs in China
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Author: Yijie Wang
Abstract: Small and medium-sized banks and enterprises are playing an irreplaceable role in the economy of China due to their long-term development. However, SMEs are still facing severe financing constraints and the financing demands of small and medium-sized enterprises (SMEs) which are orienting toward small and medium-sized banks are facing severe constraints. Besides, there are still considerable difficulties in solving this problem. Many researches proved that small and medium-sized banks have not been able to play their positive roles in reliving the financing constraints of SMEs. Based on this point of view and the current situation, we explored the way to solve the problem of the development of small and medium-sized banks and the financing constraints of SMEs by empirical analysis. The results show that, after small and medium-sized banks and enterprises taking positive and sustainable development measures, the requirement of collateral of SMEs has been reduced and the financing environment of promising SMEs has been improved to some extent. After confirming the positive role of the development of small and medium-sized banks in relieving financing constraints of SMEs, we put forward some practical suggestions for how to ease the financing constraints on SMEs through the development of small and medium-sized banks and enterprises and from different aspects.
Keywords: Small and Medium-sized Banks, SMEs, Financing Constraints
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