Sme Credit Guarantee System - Based On The Perspective Of The Economic Regulatory System

The SMEs (Small and Medium sized Enterprises)is important in the national economy, specially in keeping economical activity, increasing employment,technical invention and activating the consumer market ect. But the indirect route of financing is unsmooth and the direct route of financing is vacant. These reasons lead SMEs to face the difficulty of financing. To solve this problem, it is necessary to set up the SMEs' credit guarantee system which should be posed and led by the government. This institution will make use of guarantee to rose banks to extend credit loans to SMEs. During the process, the organizations for SMEs' credit guarantee interpose between commercial banks and SMEs. This style can not only promote the SMEs' credit degree and disperse the financing risk of commercial banks, but also help to construct China's credit system and realize the policy of developing SMEs. Therefore the SMEs' credit guarantee institution is the effective measure to cure the difficulty of SMEs' getting loan.This article aims to study the SMEs' credit guarantee from both theoretical and practical prospectives. Theoretically, the SMEs' credit guarantee is based on the theory of economy and economical law. The SMEs' credit guarantee is a new management system,with a purpose to reduce the transaction cost and enhance the social benefit of the SMEs' financing. That means the SMEs' credit guarantee is according with the economy rule. On the other hand , the government establishes the SMEs' credit guarantee also can remedy the government failure and market failure of disposing financial capital and credit sources. The SMEs' credit guarantee should be accordingly regulated by the economical law. This article analyzes the leagal relationship among government, commercial banks, SMEs and organizations for SMEs' credit guarantee too. Practically,this article attempts to study the SMEs' credit guarantee in other countries and regions. The experiences offoreign countries (especially studying on USA, Japan, Italy and Austria ect.) will be carefully analyzed and dialectically applied in Chian's SMEs. In China, the SMEs' credit guarantee system has passed three steps which are starting step, pushing step and regulating step. Although the SMEs' credit guarantee system is still in experiment, it has prime model and has taken some effective to SMEs. This article introduces the model of activity on SMEs' credit guarantee and the leagal forms of organizations of SMEs' credit guarantee simply. Otherwise, the SMEs' credit guarantee has many problem because it was established just for a short term. For example: the funds of credit guarantee is so small that effect the guarantee capacity; it is too hard for SMEs to get guarantee; the organism of controlling risk and dispersing risk is imperfct; the commercial banks' attitude towards SMEs' financing are indifferent; the credit system is vacant and so on. So in the application process,the problems of SMEs' credit guarantee in China will be posed and suggestions will offered to develop and promote the SMEs' credit system guaranee. This article attempts to give some suggestion, such as: 1. Remedy the understanding of the SMEs' credit guarantee; 2.Set up the enterprises' credit system; 3. Reform the financial organism and construct the financial market system to hold the SMEs; 4. To perfect the SMEs' credit guarantee system including extending the soure of credit guarantee funds, perfecting the organism of controlling and dispersing risk,doing guaranee innovation,perfecting the law and regulation which concern of the SMEs' credit guarantee.