Research On The Problem Of Credit Guarantee System For The Small And Medium-sized Enterprises In Liaoning Province

The Small and Medium-sized Enterprises (SMEs) have made great progress in recent years. And its overall quality and the contribution to the national economy are rising. But according to the whole situation and the development trends, it will exist for a long time that financing is difficult to meet the funding needs of the present state. "Financing constraint" will be as a problem to restrict the development of the SMEs for quite a long period of time. The current "Financing constraint" is first expressed as indirect financing, and the real reason is the lack of credit for the enterprise. Therefore, speeding up the establishment and improvement of the national SME credit guarantee system, creating a social credit environment gradually, and striving to enhance the credit worthiness of SMEs' is the most urgent task of solving the problem of "Financing constraint"To address the problem of loans and guarantees for the SMEs,48% nations and regions of the world have established credit guarantee system for SMEs at present. Japan, the USA, Germany, Canada and Taiwan region set up SEM credit guarantee agencies respectively inl937,1951,1953 and 1960. Now the SEM credit guarantee system has become a common practice for the country to support the development of the SEMs. In China, credit guarantee for SME is still in its infancy, and its theory and practice is not enough to fill up, so it still has great difficulty to complete the relevant research related to the existing experiences and information. In this paper, we discuss its development process and practice mode of the SEM credit guarantee system in our country, based on the research and analysis of the western developed countries'SEM credit guarantee system which is represented by Japan & the USA, and the circumstances combined with the characteristic of regional economy in Liaoning Province. There are five parts in this paper. The first part is an introduction, mainly including the motivation of the paper topics, research significance, research status, study methods, content structure and thesis structure. The second section discusses the theory about credit guarantee, including the theory of credit rationing, transaction cost, adverse selection & moral hazard, signaling & credit evaluation, and relationship lending, which are the theoretical groundwork for future study. The third section is the comparative analysis of the SME credit guarantee system at home and abroad. In this part, we introduce the status of Japan and the USA's SME credit guarantee system first, and summarize the information that we can learn. Then we present the progress and some successful cases in the practice mode in China's SME credit guarantee system at this stage. The fourth part of this paper details the status of SME credit guarantee system in Liaoning Province, finds out the existing questions and analysis the causes that lead to those questions. The fifth part propose suggestions to improve the SME credit guarantee system in Liaoning Province drawing on the above of successful experiences at home and abroad. There is the conclusion and some of the inadequacies of this article in the end.In short, through this research, I believe that the Credit Guarantee is an effective way to deal with the "Financing constraint" for SMEs. We should starts from the actual situation in our country, combined with the regional development characteristics, at last proposes to perfect Chinese SME credit guarantee system, and to improve the status of the financing difficulties of SMEs fundamentally.