The Research On The Function And Limitation Of Financial Guarantee Institute For SMEs

In recent years, Small and Medium Enterprises (SMEs) of our country have developed rapidly since the Policy of Opening and Reform.The position of SMEs in national economy is outstanding day by day, SMEs make a great contribution to the development of our economic. But the most important factor to restrict the development of SMEs is the lack of fund that mainly comes from commerical banks, financial difficulty has always been mainly problem which blocks SMEs to farther develop. As an important composed part of guarantee industry, financial guarantee is predominant way for SMEs services. SMEs financial guarantee which is a high-risk and low income industry and universal all over the world to support SMEs is also the effective way to remodel 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. Though financial guarantee plays a very important role in promoting SMEs to slow the difficulty of financing,what is more, guarantee institute are facing the trend of fast development. For the existence of such factors as that asymmetric information still existed among guarantee institution,commercial bank and SMEs, The internal system imperfect and the external environment non-matching exist with financial guarantee institution is still in deficiency. Therefore, establishing and improving guarantee institution of SMEs is imperative.The academic community have made a lot of research about financial guarantee, whether the problem is revealed or putting forward inspiring ideas and proposals which made a great important contribution to promote SMEs financial guarantee institution reforming. Our country academic which mainly focused on the application of different financial theories and methods about financial guarantee, made lots of analysis on the nature of guarantee agency,this article which makes in-depth research about the function and limitation such as asymmetric information, external environment and internal construction of SMEs financial guarantee institute is still few, which have a important significance on the further development of SMEs financial guarantee institution. The author of this article make reflection to the operation model of steel industry guarantee companies based on the author's internship with Shanghai Ming-yi Guarantee co.,Ltd, and the author explore that how to develop the SMEs financial guarantee institution to promote the development of SMEs through in-depth analysis of the function and limitation of it. This thesis based on reviewing the research literature at home and abroad and concluding the theory of the financial guarantee which has been existed and other research achievement; the thesis applies the Supply and Demand model of economics, analysis that financial guarantee institute plays a very important role in promoting SMEs developing based on asymmetry information, the thesis incorporates the guarantee case of Shanghai A guarantee co.,Ltd in detail, applies positive and normative methods to analysis the guarantee operation of steel industry guarantee company in detail, points out steel industry guarantee company that plays some part some part in relieving financing difficulties steel enterprises; Then employing theory analysis and case study to the problem of SMEs financial guarantee, further analysing the difficulties of solving the problems of financial guarantee system based on the case of "KeZhiKe incident"; At last, this article gives the countermeasures and proposals of how to improving the financial guarantee system, concludes that we placed our emphasis on striving to develop industry guarantee company and taking advantage of bringing cluster effect.