Factors to Impact the Credit Availability of SMEs

With the data in the credit system of the People’s Bank of China, this paper empirically researches the factors to impact the credit availability of the SMEs in Hunan Province and examines the technology of bank lending to SMEs. The empirical results show that large-scale and cross-regional banks have not provided relationship loan for SMEs; the banks pay little attention to the financial characteristics of SMEs; the main technology of large-scale and cross-regional banks leading to SMEs is credit score. The author’s suggestions are, first, to integrate information resources and develop independent credit rating agencies for SMEs credit assessment so as to reduce asymmetric information between the large-scale and cross-regional banks and the costs of the loans to SMEs; second, to make efforts to develop small and medium-sized regional commercial banks and encourage the banks to form and utilize their comparative advantages of relationship loan for SMEs.