Small and medium-sized banks and small and medium-sized enterprise relationship lending: Case of Zhejiang Tailong Commercial Bank

The analysis on small enterprise credit practices of Zhejiang Tailong Commercial Bank proves that the relationship lending helps to ease market failure in credit market, improve decision efficiency of commercial bank, solve the difficulty that the small and medium-sized enterprises are lack of asset guarantees and reduce the risk of the bank loan. In order to solve the financing problems of the small and medium-sized enterprises better by using the relationship lending, a great effort should be made to improve and develop the small and medium-sized financial institutions, guide and promote the transformation from the non-governmental financial institutions to the normalized small and medium-sized financing service institutions, and improve the small and medium-sized credit management system.