A Research On Promoting The Guarantee Industries Development In China

With the continuous and in-depth development of China's socialist market economy, the small and medium enterprises (SMEs), as a driving force for economic growth, an important force to absorb the main employment demand and effective organizational form of technology and mechanism innovation, play a pivotal role in our national economic development, social stability and the improvement of people's living. However, the difficulty in financing arises as the choke point for SMEs' development. Thus it becomes extremely imminent to develop a healthy Guarantee Industry in China. The Guarantee Industry serves as a bridge between SMEs and banks. With this credit intermediary, SMEs can not only enhance their ability to finance, remove the barriers of lacking guaranty in financing, but also make up for credit insufficiency of SMEs. Moreover, the Guarantee Industry can change the profit flow of both the supply and demand parties of capital and the allocation of control over the remaining structure, decentralized risks of financial institutions which provide financing for SMEs, and promote financing transactions, thereby optimizing the financial structure.Based on the research of domestic and foreign guarantee industries, the thesis puts forward many constructive suggestions for the development and growth of China's Credit Guarantee Industry, for example, to establish a sound re-guarantee fund system and a sound legal system for SMEs credit, to improve SMEs loan collateral system, to separate the policy guarantee and commercial security, to realize the integrative operation of guarantee and insurance and so on. In the end, the thesis suggests three steps to building a health and effective guarantee industry with Chinese characteristics.