Study On Credit Guarantee And Risk Management Of Medium And Small Enterprises

Medium and small enterprises are the important part of China's economy and they enable the market economy to flourish, bring many job opportunities and become the core of the development of national economy. However, the financing difficulty has become the bottle-neck which restricts the development of medium and small enterprises. The medium and small enterprises have a small size and lacks of money and talents and these factors make them less credible. Compared to large enterprises, they are more risky and short-lived. It is difficult to change all the disadvantages and it is a world wide problem for medium and small enterprises to finance. Scholars at home and abroad do much research on this issue and credit guaranty is a good method to solve this problem and the credit guaranty corporation has come into being.There are many problems for the credit guaranty corporation for medium and small enterprises in practice. Large corporations with great credibility are good customers of commercial banks and it is easy for them to get loans. However, medium and small enterprises, with low credibility and high risk, have to get loans with the guaranty of the credit guaranty corporation. Therefore, the credit guaranty corporation for medium and small enterprises faces great risk and has to bear the moral risk from both the enterprises and the bank. The cooperation bank makes use of its advantages when cooperating with the credit guaranty corporation and compels the credit guaranty corporation to bear all the risk. This is unfair and unreasonable. The participation of medium and small enterprises reduces the management risk of the bank and the moral risk and the converse choice, and enlarges the range of the bank business. In business, they are cooperative relationship.The credit guaranty corporation manages risks and bears responsibilities and effective management of risk becomes a key point for its survival and development. This thesis, based on the risk management theory, systematically researches the risk of medium and small enterprise credit guaranty and puts forward effective risk management methods through studying the main source of enterprise management risk.The credit guaranty corporation is in an inferior position when cooperating with the bank, thus they bear most of or even all the risks. According to this, this thesis puts forward the mathematical calculating method for risk sharing with the hope of enabling the credit guaranty industry to develop faster and better.