After China s accession into the WTO, the issues of improving the assets structure of small and medium-sized financial institutions within a limited period of time and enhancing their competition edges need to be addressed urgently.

For the small and medium-sized financial institutions in China, there is a bumpy and rough way to go, especially after China s entry into WTO.

To improve “the geography dual-economy economic structure in the area" between the western and eastern of our country, a feasible method is: Studying utilizes finance to support, especially the financial support function of the medium and small financial institution in the west, accelerate the economic development of the western region.

In the world, big banks account for 10% of the total at best, and the remaining 90% are small and medium-sized financial institutions.

Currently, the developing condition of small and medium-sized financial institutions in Jilin Province is unfavorable.

Because medium and small financial institutions have no capital subject to bearing risks,the essence of treating the risk of bad capital is to search for a subrogation shareholder.

With the deepening in marketability of economical operation and the diversification of economic subject, the medium and small financial institutions play an important role in our financial institution system.

The Small and Medium Financial Institution and SME s Relationship Finance;

Compared with the big financial institutions,the local medium and small financial institutions can have the comparative advantage to weaken the information asymmetry from the theory and the reality.