Study On Credit Guarantee System For SMEs In China

With the development of our national economy, the state that state-owned enterprises dominate the economy is gradually collapsing. Small and medium-sized enterprises (SMEs) are playing an increasingly important role in our national economy, which has boosted the prosperity of our economy and absorbed social employment on a big scale. But they have met with a variety of difficulties. An acute lack of financing is the biggest one and that the credit guarantee system is not in position is the main cause. Therefore the establishment of complete and well-executed credit guarantees system helps to solve the financing difficulty effectively.Looking around the world, a great many nations has been established credit guarantee system for SMEs and their experience will provide help for the improvement of our credit guarantee system for SMEs. The credit guarantee system was founded in 1992 and has a history of 14 years. In recent years, The SMEs are being paid more and more attention and the credit guarantee institutions are emerging which form a bridge to link SMEs and banks to ease the financing difficulty and enhance the credit rating of SMEs.But many problems arise in the development, such as ambiguous status, non-diversified fund source, loose risk control of credit guarantee institutions, banks' unwilling cooperation, and moral hazard caused by SMEs'weak credit. So it is urgent that these problems should be solved to promote the development of SMEs.Opportunites are along with challenges. So following the market rules to solve the problems in the market way is certain to boost the development of credit...