On support of commercial banks to financing of small- and medium-sized enterprises in Inner Mongolia

Since economic growth is slower than before, the number of small- and medium-sized enterprises (SMEs) in China grows rapidly. In order to obtain external financing, SMEs must use the power of commercial banks. This paper analyzes the present situation and existing problems of financing services of SMEs in Inner Mongolia from the perspective of commercial banks, and finds out that the current problems are as follows: relatively high bank loan interest rate, cumbersome credit flow, information asymmetry between banks and enterprises; lack of awareness from commercial banks to provide comprehensive service for SMEs, and insufficient financial products suitable for SMEs. Based on these questions, this paper comes up with suggestions from four aspects: business process, information disclosure, organizational structure and product innovation.