Research On Effectiveness Of China's SME Financing Guarantee System

Since China's reform and opening, with the further development of market economy the number and the scale of small-medium enterprise (SMEs) in China is growing rapidly, and its contribution to the national economy increased year by year. The development of SMEs has been key to national economic growth, and the SMEs financing difficulties has also become a bottleneck that restrict the development of the national economy.How to effectively solve the problem of SMEs financing difficulties? Through years of exploration and research, Theory and practice find that the root of SMEs financing difficulties is information asymmetry between banks and SMEs. SMEs financing guarantee institution as a third party with information superiority can build the bridge between bank and SMEs to communicate information by guarantee for SMEs with the assets of its own, as a result, the financing channels for SMEs are broaden.At present, the existing financing guarantee model in accordance with investors and guarantee purposes can be divided into three different security model, that is policy financing guarantee model, commercial financing guarantee model and mutual financing guarantee model. According to different countries and economies, SMEs financing guarantee system has focused on different model.China's financing guarantee system is mainly based on policy financing guarantee, taking into account the other two models, which play a certain role to solve the problem of financing difficulties, but the phenomenon of SMEs financing difficulties are still a lot and can not be further improved, people begin to re-examine the effectiveness of the existing SMEs financing guarantee system.This article is produced in this context. First, based on the characteristics of china's economic transition and SME financing environment, find the suitable possible way to solve SMEs financing difficulties, and the way is to establish SME financing guarantee system; second, analyze the mechanism, present situation and deficiencies of existing SMEs financing guarantee system, and found out the root causes of problems, that is structural imbalance within the system of SMEs financing guarantee; For solving the structural imbalance of the financing guarantee system, make the whole financing guarantee as a organism that is combined by policy financing guarantee, commercial financing guarantee and mutual financing guarantee, start from three evaluation criteria to measure the validity of the existing model of financing guarantee, and then separately demonstrate the effectiveness of these three models through the model.In summery, based on the analysis of the previous text, the paper provides some recommendations on the construction of SMEs financing guarantee system, in the hope to provide constructive suggestions.