Importance Nowadays, lending to small businesses becomes a priority and quite profitable area of banking. Such banking products as loans to individual entrepreneurs and limited liability companies become increasingly popular in Russian regions. Until recently, the volumes of loans to small and medium-sized businesses in the Russian Federation have grown annually. However, the results of the SME lending market in 2013 were contradictory enough. On the one hand, this sector is still quickly growing, on the other hand, the small business lending dynamics has slowed down, and the growth rates of the SME lending market have reduced. The activity of major players in the segment has decreased noticeably. Although the market expects further growth retardation in 2014, today the small and medium-sized business segment has become a higher priority of the Russian State policy. The SME lending market capacity is huge, and small and medium-sized businesses are prospective customers of Russian commercial banks. Objectives The objectives of the study are to research the types and conditions of lending to small and medium-sized businesses by Russian commercial banks; to identify the most important issues and problems of this segment of lending; to study the performance of the largest Russian banks in the SME lending market for 2011-2013; to make a forecast and emphasize the main areas of its further development. Methods To review the Russian SME lending market, I used the economic, statistical and graphic methods. Results The study identified the trends and the most promising areas of the sector development. Conclusions and Relevance I conclude that separating the services to small and medium-sized businesses into an individual direction of the banking credit policy will enable banks to provide a full package of services to the target segment taking into account mutual interests of the parties.
Keywords: lending, small and medium-sized business, credit recovery, credit portfolio, growth rates, credit factories, credit products, small business, unsecured loans, availability, credit resources
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