Introduction

Date: 2015-10-07; view: 437.

Plan

Supervisor

MASTER THESIS

Beatrice Bon-Michel

Position, name, surname

St.Petersburg

Introduction3

Part 1 SME in the economy of the country5

1. SME: some specific needs 5

2. The development and current conditions of small enterprises in Russia 9

3. Sources of financing: special features in Russia 13

Part 2 Small and medium sized enterprises and their relations with banks16

1. The modern conditions of small business credit market development 16

2. Lending SME- risks and management of those risks 20

3. Reality of market - Basel II effect on the credit market to SME 24

4.What next with Basel III? 26

Part 3 SME and banks - Scope for further improvement30

1.Modern credit products and procedures for SME - ROSBANK example 30

2.Implementation of standard technologies, lending conditions and other forms of

efficiency improvement for SME 34

3.Regulation to support SME development and bank loans 38

Conclusion42

Bibliography44

Appendix47

Experience of developed countries has shown that small and medium sized businesses are the backbone of modern economies. In developed countries, small and medium enterprises have been played an important role in all areas of life for a long time. In Russia, the process of the development of small and medium-sized businesses started with the beginning of the country's transition in 1991 to a market economy.

Small and medium sized enterprises is a constant source of tax revenue, it creates more jobs, reducing the unemployment rate in the country. Finally small and medium sized enterprises more are mobile and easier to adapt to rapidly changing conditions. All this encourages the State and other counterparties of market relations, particularly banks, to actively participate in the development of small and medium-sized businesses.

In case the economies in most developed countries are mainly represented by the services sector, this sector has predominant share of small and medium-sized businesses. Russia is no exception. Small and medium enterprises are in fact one of the main sources of income for people, the source of their solvency and consumer activity. Small and medium-sized businesses are most easily controlled in terms of taxation as they have a clear and simple structure.

Small and medium enterprises play a significant role in the innovative development of our country and other developed countries, since such enterprises are investing in high-tech industries, but Russia today is far behind Western countries in this question.

Only 6% of small and medium-sized businesses engaged in the development of scientific research and experimental activities. But the field of innovation gives the possibility for more rapid development, as well as for the development framework for the creation of larger enterprises. Today the State is increasingly seeking to take care of the development of small and medium-sized businesses. It makes different steps in this direction which include programs to support small and medium-sized businesses, preferential credit terms and steps to eliminate administrative barriers.

As you know, one of the macroeconomic objectives of the state is to achieve full employment. It is difficult to overestimate the role of small and medium-sized enterprises in the labor market, as they are the main source of employment. Creating new jobs such organizations solve the problem of unemployment among young people and women. And this in turn leads to socio-economic and political stability in the society.

Lending to small and medium-sized businesses is a very important topic because such enterprises often have lack of the equity required for the development, and the loan can solve many operational problems, as well as long-term objectives. Lending also helps to develop innovative economy.

Despite large number of papers and publications of Russian and foreign authors on the subject of lending to small and medium-sized enterprises, today there are not enough data to assess the reliability of techniques that credit organizations use to assess their borrowers.

The objectives of this paper are to identify the problems associated with lending to SMEs, specific features of such enterprises and the ways to improve the efficiency of SMEs through interactions with banks and with other methods.

The following objectives were stated to achieve the goals:

1. The review of operating conditions of small and medium-sized businesses in Russia;

2. Study the features of small and medium-sized enterprises as borrowers;

3. The review of credit market in modern conditions;

4. Study of modern credit products on the example of ROSBANK;

5. Study of the lending procedure to SME in ROSBANK on the example of LLC "Berry";

6. An overview of the risks associated with lending to SMEs and the management of these risks;

7. A brief overview of Basel II and III and their implementation in Russia;

8. Summary of the results of the study and recommendations concerning the effective interaction between banks and small and medium businesses.

The subject of the study is relations between commercial banks and small and medium-sized businesses. The object of study is the process of lending by commercial banks to SMEs.

While preparing this paper there were used works of domestic and foreign experts and bank officials, laws and regulations, as well as articles from the periodical literature, revealing the specifics of lending to small and medium-sized enterprises.