Research On The Financing Guarantee Institution Of GMS In Changchun City

Financing, accommodation of funds, is the flow between the insufficiency and surplus of funds, which is the resource allocation process, including financial integration and loan, the availability and utilization of funds. In general, corporate financing could be divided into two major categories, external financing and internal financing. The reasons for the plight of financing of SME are not only the problems about SME themselves, but also discrimination in commercial banks to SME, besides the financing channels for SME is not clear.Financing guarantee is a secure by the Guarantor to the Guarantee for the beneficiaries to repay the secured financing provided by the principal and interest. In China, the SME financing guarantee is an act that agreed between the credit guarantee specialized agencies of SME by the same level government and government-designated department and registered by law and approved the establishment with creditors (including banks and other financial institutions), if the guarantee does not perform or can not perform the debt agreement by the main contract, guarantee agencies assume responsibility or to fulfill obligations stipulated. The roles of financing guarantee are to spread the risk and share the cost of banks to promote bank lending to SME, and narrow the gap of indirect financing of SME. Thus, in developed countries, government departments may also provide direct funding to SME, but more important is to provide security support for SME financing. SME credit guarantee system is a financial support system that has the highest usage and is most effective in developed countries.The SME financing guarantee institution of Changchun City are built up gradually after the release'on the establishment of SME credit guarantee system for pilot guidance'in 1999. Closing the end of 2007, Changchun City has a total of 23 guarantee institutions for SME. Although the policy-guarantee institution are minority in the absolute amount, but in the role and scale have an absolute advantage. Looking at the present, the policy-security institutions still the main form in Changchun City, the commercial-guarantee institution had a limited effect, and the mutual-guarantee institutions are scarce. Since the start of a security system in Changchun city, compensation rate and loss rate remained at a low level, and received good social benefits. However, there are still many gaps and deficiencies in the SME financing guarantee institution of Changchun City, the specific features: First, the source of secured funding is single, second, guarantee funds have small-scale, three is a single type of guarantee institutions, and fourth is the guarantee institutions assure limited magnification. Other factors affect the development of guarantee institution is: First, commercial banks, the commercial banks and guarantee agencies were reluctant to risk in the first, and second, the involvement of commercial banks are not enthusiastic and third the commercial banks lending a high rates. Second, SME, SME have a lack of own strength, and a higher risk, and second, bad credit of SME, third is active participation of SME in security is not high. Third, government, The Government has not developed a relatively complete the establishment of SME credit guarantee system of laws and regulations. And second, the risk compensation mechanism of the policy-guarantee institution is unreasonable.Analysis is divided into three parts, the first is the linear regression analysis between the guarantee institution guaranteed loan value of SME in Jilin Province and the GDP of Jilin Province, to promote the role that guarantee institution in order to examine whether in the development of SME; followed is the pulse output analysis by the amount of the guarantee and the GDP of SME, in order to analyze the amount of guarantee and the respective value of SME and mutual influence; finally is the principal factor analysis between the guarantee to support SME and economic situation which are two affecter of the output value of SME, to investigated which factor on the impact of the development of SME plays a major role.The choice of various aspects of the required measure: The amount of the guarantee agency's guarantee data is selected in guarantee institution sector, because the support of the s guarantee institution to the development of SME, is assure on commercial bank loans to SME. The amount of guarantee can fully explain the degree of support for SME development.Measure levels of development of SME selected areas, since, no statistical is output to SME in the existing statistical standards. This paper choices the discrepancy between the GDP of Jilin Province and the value of industrial enterprises above the scale to approximated development of SME.Measure the economic situation in Jilin Province, was selected to represent the GDP of Jilin Province.Unary regression analysis better fit and passed the test shows that there is a positive correlation between the output value of SME in Jilin Province and the SME credit guarantee institutions guarantee, that SME credit guarantee institutions to promote the development of SME. From the scatter diagram shows more clearly the development of credit guarantee institutions for SME to promote the role, especially after 2005, with the credit guarantee agencies and the regulations of their own, which promote the more evident.Pulse analysis showed that, first, SME value of output to SME value of output is sustained, and the first three is not clear from the fourth began to become strong, and to around 8 maximum. Second, guaranteed loan has little effect on the output of SME. Guarantee the amount of credit guarantee institutions for SME in the pre-production almost does not affect the development of SME, to 8, 9 of gradually affected. Third, SME have a certain amount of value on the guarantee was affected. Is no pre-impact, from the No. 5 begun to have an impact, and constantly increasing. Shows the development of SME to promote the guarantee institutions sent me business. Fourth, the guaranteed loan amount of the security is almost negligible. A security agency to carry out the business description is almost free from the impact of previous operations.The fit of principal factor analysis is also very good and information on the current development of more SME in Jilin Province from the economic growth and good economic environment, but the support of credit guarantees agencies are not very clear.Analysis of the results of the above indicate that the current development of SME in Jilin Province there are some factors that guarantee institutional support, but the guarantee institution to support SME development is not obvious, than the overall economic environment favorable impact on the development of SME, the support of guarantee institution is very limited.Based on the above theory and positive analysis, this paper gives some advice on the improvement of the financing guarantee institution of GMS in Changchun city, the proposal: First, increase its efforts in constructing guarantee institution. The development of guarantee institution and the establishment of a guarantee system can effectively promote the development of SME. But the effect in Changchun City is not obvious. Therefore, it is quite necessary to increase efforts on the construction of guarantee institution. Second, continue to strengthen the construction of policy-guarantee institution which is the main undertaker of current guarantee business, and encouraged the development of commercial guarantee institutions and mutual guarantee institutions, which supplement effectively. Third, appropriately extend the guarantee magnification. Without corresponding magnification, the guarantee institutions can not play their due role. Finally, in consideration of the development of guarantee agency and risk control, the restrictions on lending rates to the guarantee agencies should be appropriately to relaxed, and improve the SME guarantee agency risk compensation mechanisms.