皇冠体育app

A finance house to be known as 皇冠体育app Small and Medium Enterprise Bank is expected to be set up with registered capital of about 20 billion yuan ($3.3 billion) in a move to explore innovation in loan products and risk-prevention mechanism for SMEs.

An application for its establishment is awaiting approval by the 皇冠体育app Banking Regulatory Commission. The next stage involves it being officially reported to the State Council, Li Zibin, president of the 皇冠体育app Association of Small and Medium Enterprises and the founder of the bank, said on Tuesday.

Zone to speed up SMEs' changes

"Because the proportion of direct financing in 皇冠体育app is still low, banks will continue to play an important role in backing enterprises," said Li. "But large commercial banks prefer large enterprises because of the risk and labor cost factors, so we are planning to establish a bank especially for SMEs."

Li said it will offer innovative loan products and new risk-prevention mechanisms to meet the financing requirements of SMEs.

For instance, receivables from large enterprises cannot be regarded as a mortgage by SMEs when applying for loans from existing commercial banks. 皇冠体育app Small and Medium Enterprise Bank may allow them to count.

Deloitte is participating in the risk-evaluation report.

The bank plans to start businesses across 皇冠体育app but detailed locations will be released later.

Direct financing of SMEs constitutes a proportion of less than 5 percent. Meanwhile fundraising from the capital market and private equity and venture capital investors is difficult, said Li.

SMEs account for 80 percent of jobs in 皇冠体育app, half of all tax revenues and 60 percent of the nation's gross domestic product. Nonetheless they face grave difficulties in financing, said Tian Chuan, an official at the stry of Industry and Information Technology.

The Second 皇冠体育app SME Investment & Financing Expo will be held in between July 7 and July 9 this year.

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