SME financing in China
Abstract
SMEs have a great contribution in China’s economic expansion. However, the financing predicament currently faced by SMEs constitutes a great bottleneck for their development. Banks are reluctant to lend to them, mainly due to the lack of collateral and their poor capability in pricing risk. This is the reason why credit guarantee institutions play a key role in SME financing and the perfection of the credit guarantee system is important for promoting their access to credit. In addition, the lifting of the ceiling on lending rates as well as other steps taken by banking authorities will encourage bank lending to SMEs. Finally, informal finance has a significant part in SME financing.Download Info
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Paper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2007-29.Length: 32 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:drm:wpaper:2007-29
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Postal: 200 Avenue de la République, Bât. G - 92001 Nanterre Cedex
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Web page: http://economix.fr
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Related research
Keywords: SME financing; credit guarantee; informal finance;Find related papers by JEL classification:
- E26 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-05 (All new papers)
- NEP-CFN-2008-01-05 (Corporate Finance)
- NEP-CNA-2008-01-05 (China)
- NEP-DEV-2008-01-05 (Development)
- NEP-MFD-2008-01-05 (Microfinance)
- NEP-TRA-2008-01-05 (Transition Economics)
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