The Impact on Interest Rate of Manufacturing SMEs Lending by the Relationship between Banks and SMEs: Evidences from Xuzhou and Liuzhou

SME financing is one of the current hot issues.It is generally believed that,effective relationship between banks and SMEs can reduce the loan collateral requirements of SMEs,and effectively reduce the loan interest rate.However,through the Jiangsu Xuzhou and Guangxi Liuzhou typical sample surveys,the study found that,in the SMEs' loans,actually exist binding effect.When loans accounted for a larger proportion of the funding gap at SMEs,for risk controlling and grabbing more surplus value,the bank will raise the loan rates.When SMEs have more financing channels,bank loan interest rate became higher because of the SMEs' exuberant financing demand.The deeper of the relationship depth between banks and SMEs,which measured by the number of years of cooperation and the proportion of loans,the higher of the loan rates;but the wider of the relationship breadth between banks and SMEs,which measured by the number of other business,the lower of the loan rates.