The Analysis on the Difficult and Expensive of Linyi's Real Economy’s Financing Problem

Abstract

This paper analyzes the financing situation of Linyi's real economy based on the statistical data of Linyi from 2010 to 2018 and the results of the questionnaire on foreign trade, logistics, and financing of merchants in Linyi Mall. First, it analyzes the financing present status of Linyi's real economy, including the continuous increase in real economic financing, real economy credit growth rate is higher than Linyi's GDP growth rate, and Linyi’s real economy bank loans have a relatively high proportion of medium and short-term loans. Secondly, it analyzes the problems existing in Linyi's real economy financing. These problems includes: some real economy's financing needs are not satisfied, some real economy's financing cannot meet the business needs, and some real economy need financing but didn’t do it. Then it discusses the reasons for the difficulty and expensive of financing in the real economy. The main reasons are: the real economy’s financing channels are very seldom, the main method of financing is bank loans. The banks are unwilling to lend to the real economy because the real economy’s credit financing threshold is high and the increased in production costs, reduced in profit margins, as well as the higher operating risks. Finally, we put forward the suggested policy to improve the efficiency of credit supply in Linyi City.