Commercial banks will face challenge in terms of their customer structure. Hence, it is urgent for commercial banks to discover and foster stable customers from the bunch of SMEs. BIS Review 87/2005  1  Credit market and capital market mainly differ in the fact that there is a one-to-one negotiation between commercial banks and their customers.
Hence, commercial banks are in a better position to get management information, make judgment on risks and price the loans. Therefore, commercial banks can tailor their products for SMEs according to their financing needs at various stages. Meanwhile, commercial banks shall have a long vision to explore the potential of customers and help SMEs quickly transit from starting stage towards mature stage. II.