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Exploring the Model of Combining Equity Investments and Bank Loans in Commercial Banks —A Case Study of Silicon Valley Bank
Department of Russian, School of Foreign Studies, Nanjing University, Nanjing, China
- 1 Department of Russian, School of Foreign Studies, Nanjing University, Nanjing, China
Journal of Financial Risk Management·Volume 13 (2024)·Pages 657–673·Published 29 October 2024·DOI10.4236/jfrm.2024.134031
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Abstract
Specialized, refined, differential and innovative (SRDI) small and medium-sized enterprises (SMEs) are the major driving forces of technological innovation, and their growth heavily relies on investments and loans from commercial banks. However, these enterprises generally do not meet the traditional criteria for bank financing. This paper analyzes the practices of Silicon Valley Bank (SVB) in the United States, focusing on its client profiles, venture debt offerings, and risk control strategies. Drawing on the SVB experience, this study aims to provide insights for Chinese commercial banks on innovating their financial service models to support technology-driven SMEs.
KeywordsCommercial BanksCombining Equity Investments and Bank LoansSilicon Valley Bank
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