Certain Legal Issues Of Corporate Lending Performance Insurance Study

As an integral part of the national economy system, enterprises play astrategic role in the sustainable and rapid development of the national andworld's economy. Among them, small and medium-sized enterprises isconsidered to be the most dynamic "cells" of national economy, playing animportant role in ensuring stable economic growth, creating employment,promoting marketing competition, promoting technological innovation, andmaintaining social stability. Enterprises can't develop without the financialsupport. However, in recent years, the difficulty of financing hasincreasingly become a bottleneck in the development of SMEs. The highcosts and narrow channels of financing have been important factors torestrict the development of SMEs. In this case, how to provide effectivefinancial support for SMEs has become a problem to be solved.China's securities market has not yet develop well, SMEs get mostfunds in the form of indirect financing. Based on the reality of China'sbank-based financial system, the majority of funds of SMEs rely on bankloans, so the difficulty of getting bank loans become the main form offinancing difficulty. Considering bank loans are the major financingchannels for SMEs, this paper selects the perspective of bank loans, anddiscusses whether the insurance mechanism could play a specific role in theprocess of solving the financing difficulty of SMEs and how to play therole. At present, China is carrying out performance guarantee insurance ofenterprises' loans in some areas and has received preliminary results.However, the facts that China's enterprises credit system is not perfect andthe relevant laws and regulations are absent are restricting the development of the performance guarantee insurance in a wider area. Based on the actualeffects of performance guarantee insurance of enterprises' loans in Beijing,Shanghai, Zhejiang and other areas, this paper makes theoretical study indepth and puts forward some feasible suggestions to the development ofperformance guarantee insurance of enterprises' loans.