Problems And Countermeasures In Development Of Credit And Guarantee Industry In China

With the fast development enterprises in China, credit and guarantee company plays an more and more important role in China's economy. Making great effort in developing credit and guarantee company is universal all over the world to support small medium enterprise, which is also the effective way for government to change administrative intervention to administrative guiding, to remodeling the relationship between enterprise and bank, to strengthen the concept of credit, to resolve financial risk and improve the environment of financing of small medium enterprise. In recent years, small medium enterprise develops fast and has become and significant headspring to impulse national economy of China. At present, one of the obstacles in small medium enterprise development is short of capital which is mainly from loan of bank. Making great effort in credit and guarantee company is the key to solve the problem.The paper introduces the status in quo and history of credit and guarantee company in China, and concludes the characteristics of credit system and the tendency of credit and guarantee industry. There is two primary problems in credit and guarantee industry: short of capital and faulty risk controling. To solve the problems the paper gives two suggestion: perfecting financing system and risk controling system of credit and guarantee company. The paper also analyzes the outter environment of credit and guarantee company, there are a few plights, such as unperfect laws and regulations, unperfect social credit system, lacking of industry access system, poor cooperation between bank and credit and guarantee company and empty government regulating. The corresponding ways to solve the problems are: perfect laws and regulations, perfect social credit system, establishing industry access system, strengthening cooperation between bank and credit and guarantee company and promoting government regulating.