Research On The Cooperation Model Between Urban Commercial Banks And Credit Guarantee Organizations For SMEs

Small and medium-sized enterprises finance difficulty is the main problem that the SME face in development. The most basic reason of finance difficulty is because that the SME loan has high cost, high risk and low return, while the basic reason of the high risk is because of the lack of mortgage guarantee. In the finance competition structure, both the city commercial banks and the SME credit guarantee institutions have their existence necessity and space, and the finance difficulty of SME provides the two with an opportunity for strategic cooperation and further development, then the choice of the cooperation mode becomes the key point of the cooperation success of the two. This thesis starts from the analysis of the reason of SME finance difficulty, and discusses about the cooperation necessity of the city commercial banks and SME credit guarantee institutions, and points out that the cooperation is the effective way of resolving the SME finance difficulty, promoting the development of credit guarantee institutions and the competitive advantages of the commercial banks. It also analyses the obstacle factors of the cooperation from the angels of the national macroeconomic environment, the city commercial banks and the SME credit guarantee institutions, then compares the advantages and disadvantages of three types of cooperation modes which include the government-dominated type, the mutual aid type and the market-oriented operation type. The government-dominated type is not profit-making but is subjected to the government instruction of the choice the clients and the projects. The mutual aid type of re-guarantee and united guarantee relies on the government credit and is a special mode with narrow application and government credit, following government instructions. The market-oriented operation type of commercial credit guarantee mode of cooperation is completely market-oriented, diversified, profit-making with risk control. With the examples of the cooperation of Changsha City commercial bank and 14 provincial SME credit guarantee institutions, it analyses the economic performance and the problems of different cooperation modes used in the last few years, then concludes it is better to appropriately maintain government-dominated type and full develop the market-oriented commercial cooperation mode. In the end, the suggestions for optimizing the government-dominated and market-oriented cooperation modes is provided from both macro and micro aspects.