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Moderately loose monetary policy under the credit facilities for SMEs, why still difficult?

Author: WeiZhi From: www.yourpaper.net Posted: 2010-03-16 19:17:01 Read:
Abstract: In order to cope with the impact of the international financial crisis, China implemented a moderately loose monetary policy, the first half of this year, China's money supply increase quickly picked up significantly accelerated the growth of loans by financial institutions. How moderately loose monetary policy in the context of the financing situation of SMEs? For this reason, our the Chenzhou SME financing situation research and analysis.
Keywords: moderately easy; monetary policy; SMEs; financing

In order to cope with the impact of the international financial crisis, and increase the financial support for economic development efforts since October 2008, China has implemented a moderately loose monetary policy, in the first quarter of this year, China's money supply increase quickly picked up significantly accelerated growth of loans by financial institutions better meet the economic development needs of the monetary and credit. However, in the context of moderately loose monetary policy, due to a large number of large projects, large enterprises and infrastructure construction funding, the problem of financing of SMEs are still outstanding. According to the financing situation of SMEs in Chenzhou City, I mastered the funding needs of SMEs has not been met, loans difficult problems still have not been effectively alleviated. This wide phenomenon of monetary policy tight credit, should cause all interested parties attach great importance to SMEs underdeveloped areas very unfavorable.

First, the current SME credit in Chenzhou City, the main problem facing

Since early 2009, Chenzhou City, the financial institutions to seriously implement moderately loose monetary policy, increase financial support to the local economy. The end of June, the city's financial institutions, the loan balance of 26.572 billion yuan, a year-on-year growth of 18.60%, which, this year, new loans of 4.05 billion yuan, a year-on-year growth of 76.16%. Chenzhou City credit rapid growth is a result of implementation of the investment-led local governments to maintain growth strategy, with government intervention, Chenzhou City credit the total number of fish stocked rapid growth, but the credit structure has not been effectively optimized. View is from the current financing situation of SMEs, Chenzhou City financial institutions, credit resources over to the government-led investment projects focused social investment output has led market players to some extent, to small and medium enterprises to "squeeze out effect. " Specifically, in the following areas:
First, the credit to the medium-and long-term fixed-asset investment focused, the SME short-term liquidity needs by suppression. Local governments continue to increase investment in order to stimulate local economic development, and through various incentives and preferential policies, and actively guide financial institutions to increase the matching credit for key construction projects and long-term, lead to the Chenzhou City financial institutions, medium-and long-term loans has grown rapidly . The new medium-and long-term loans from January to June of 2.218 billion yuan, up by more than 1.111 billion yuan, accounting for 54.77% of all new loans. At the same time, the SME financing to meet the rate of Chenzhou City, quarter by quarter reduced sample survey, SME financing to meet the rate of 47.1%, representing a decrease of 10 percent quarter on quarter decreased by 0.6 percentage points, which the financial institutions for SMEs Number of loans and to meet the rate of the loan amount, respectively, 60.78% and 57.44%, down 3.55 percentage points and 11.8 percentage points respectively, compared with the same period last year; the bills discounted items, amount to meet the rate of 85.7% and 71.6%, respectively, compared with the previous year a decrease of 3.89 percentage points and 3.84 percentage points over the same period.
The second is a credit to large-scale infrastructure construction projects focused SME production project loan demand is suppressed. In the promotion of government investment, the rapid development of the city's infrastructure construction. In contrast, the financial institutions of the credit support of the government infrastructure projects to further increase from January to June, Chenzhou City cumulative distribution of medium-and long-term infrastructure loan of 778 million yuan, up by more than 423 million yuan; cumulative payment of short-term construction the industry loan of 12.8 million yuan, up by more than 11 million yuan. While at the same time, some small and medium enterprises production project construction funding needs are not meet face stagnation. Chenzhou, Gao Xin platinum already been listed as the province "Little Giant" plans to nurture enterprise, but difficult to obtain loans from banks, only borrowed the high cost of financing private funds; Hualu digital short-term loans in serious long-term investment; Hua Lei LED industry the Project capital in place has run out loans is difficult to place faster; Yu Teng Chemical dependence due to inadequate supply of domestic raw materials imported from abroad led to tight liquidity; fir air conditioning project funds to purchase equipment, molds and raw materials, has not put into operation.
Third, the concentration of credit to the government's administration papers" class="content_key">public administration sector loans, corporate demand for loans to small and medium enterprises as the main body by inhibiting. To build government investment and financing platform, Chenzhou municipal government to actively integrate local land, mineral resources, funded the establishment of a number of public administration in charge of government investment and financing operations, such as Chenzhou City Construction Investment and financing company transportation construction investment and financing companies. These corporate system operation under the direct leadership of the relevant government departments, public administration, and is becoming the main body of many large-scale project loans those loans. Chenzhou City Public management and social organization of new loans in January-June of 643 million yuan, up by more than 504 million yuan, accounting for 18.39 percent of the city's new loans. Chenzhou City, the banking sector and credit focus quickly turned to these quasi-government departments under the guidance of this government investment system, and lead occupies an absolute majority of the number of small and medium enterprises group was facing credit services vacuum.
Second, the current SME credit financing difficulties cause analysis in Chenzhou City

Financing of SMEs is an old topic. Although the CPC Central Committee and the State Council, as well as regulatory authorities have been asking the banking financial institutions to achieve a breakthrough in credit policy to expand the financing channels for SMEs, key support in line with the industrial policy, environmental policy, markets, technology, The prospects for the development of SMEs, but really to implement them are often thunder, little rain. Even in the current loose monetary and credit environment, compared with enthusiasm for supporting loans for national key projects, the attitude of the banking financial institutions to launch SME credit can still be said to be worlds apart. Chenzhou City, SMEs reason to face this loose monetary policy of tight credit phenomenon, in addition to government investment centralized payment caused by short-term crowding out, three surface reasons: br />
1, the production and operation of SMEs are unstable and do not form a long-term stable cooperative partnership with the bank.
Chenzhou City SMEs are concentrated in the mining industry, non-ferrous metal smelting cyclical industries such as rolling processing, production and operation conditions and external economic closely related to cyclical fluctuations, which makes Chenzhou City put procyclical banking sector credit to SMEs sex. Economic prosperity, smooth production and operation of SMEs, the bank will increase SME credit efforts, but this time its own liquidity is not as strong demand for bank credit funds; recession, small and medium enterprises operating difficulties , the demand for bank credit funds, but the bank when they tend to tighten the money supply to avoid risks, and ultimately lead to bankruptcy of small and medium enterprises. The contradiction between the periodicity of bank credit for such small and medium enterprises in production and management put the pro-cyclical, makes it difficult to form a long-term, stable credit relationship between SMEs and banks. Credit cooperative relations is the lack of stable lead to sit back and watch the deterioration of operating conditions for SMEs in the banking sector in the current financial crisis, do not dare to give credit and unwilling to vigorously support the important reason. 2, SME adjustment and transformation capacity is weak, there is no access to bank credit to support the "stepping stone".
To support the development of small and medium-sized enterprises to improve the capability of independent innovation for SMEs, the state recently issued a series of preferential and supportive policies. As recently introduced a series of industry revitalization plan, have support policies for SMEs. These support policies should be said that the SMEs to obtain bank credit to support the most favorable "stepping stone". However, from the current status quo, Chenzhou City SME industry structure is irrational, enterprises with more than 90% of high pollution, high energy consumption, resource-based enterprises in the global financial crisis, the decline in external demand and rising operating costs The impact of the economic efficiency of enterprises declined sharply. Although the Government has to help and support the aspirations of its transformation, but due to the poor capability of independent innovation, found in the short-term supportive policies in line with national industrial transformation projects more difficult, difficult to obtain bank credit support.
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