Relationship Banking and Credit Availability of SMEs——An Empirical Study of the Survey of China's SMEs

According to the data of a survey to the loan situation of Chinese small and medium-sized enterprises(SMEs),the paper studies the impact of relationship banking on SMEs' credit availability.The results reveal that the more business a SME does in a bank,the more easily it obtains loans from the bank;when SMEs' owners or the management are VIP of banks,the credit availability improves significantly;the business contact duration and the distance between bank and enterprise have no significant influence on credit availability.Moreover,in general,it is harder for SMEs to obtain loans from large banks than small ones,but the variable of relationship banking shows significant impacts on the credit availability of SMEs from large banks.Above results verify the value of relationship banking in overcoming information asymmetry and improving credit availability.