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.

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.

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

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.