The Legal Control System Of Chinese Medium-sized And Small Enterprises’ Credit Guarantee Risk

Make a significant contribution of small and medium enterprises for economic development, its contribution to the economies of the countries occupying a heavy weight, put into force a steady stream of economic development, their innovative spirit and active temperament so that they occupy in the economy very important one seat. In recent years, in China, the contribution of SMEs already beyond the state-owned enterprises, has now become a force in the largest contribution to the economy.However, the SMEs are not easy to finance bound the growth of SMEs, the main reason for the relevant characteristics of the SMEs to determine the financing of SMEs is not easy.How to solve the financing difficulties of SMEs in this problem plagued the development of SMEs in China continue to play the role of SMEs in the national economy, so that the national economy to be more long-term, healthy development, we must attach importance to and solve problems.In many countries, especially developed countries, establishment of credit guarantee systems for SMEs become a way of solving the financing difficulty, and in this system, the central position is SMEs credit guarantee companies, to some degree are SME credit guarantee companies determine the fate of small and medium enterprises which need loans.So the development of SME credit guarantee companies becomes the key to the whole issue.However, in the early establishment, SMEs often have fewer assets, operating and managing risk are relatively large, this allows companies that provide credit guarantees to SMEs face higher operating and management risk. Especially SME credit guarantee companies have sources of funding channels are more narrow in our country, plus they always directly face the challenge of high risk and high rate of compensation, this would weaken the guarantee companies help small and medium enterprises financing. Therefore, how to improve guarantee companies’capacity to prevent and control risk, how to reduce the rate of excessive risk and compensation of insurance companies, how to set up effective mechanisms for risk prevention and control for guarantee companies, they all become the key in solving the problem of financing in order to develop credit guarantee industry.Only solve these problems, the risk which affect the healthy development of small and medium enterprises like SMEs’credit risk, SME credit guarantee companies’internal risk, the risk of financial institutions and Governments, can be avoid.In order to control the risk, we not only have to fully draw on the experience of the developed countries, but also to design a risk control mechanism according to the actual situation of our country.Only in this way can form SME credit guarantee risk of legal control system with Chinese characteristics.In the credit guarantee business for more than20years of research tells us that only in this way is really suitable for the credit guarantee system of China’s national conditions.Articles are divided into five parts:The first part, background and development of SME credit guarantee industry in China. This section provides a brief analysis of SME credit guarantee industry background.Credit loss prompted a renewed focus on credit rules of social background and rapid development of SMEs credit guarantee institutions for promoting SMEs and economic background, contributed to the emergence of SME credit guarantee industry together. To the SMEs credit guarantee institutions also made a simple summary.The second part, the risk of SMEs credit guarantee institutions in our country.make a simple introduction of SMEs credit guarantee institutions’major sources of risk. The risk comes mainly from insured customers, the counter guarantees party, internal of the credit guarantee companies, cooperation agencies and the external business environment.The third part, causes of SME credit guarantee risk in China. It is associated with inadequate laws and regulations and also with the credit guarantees companies operating irregularities, at the same time regulators for failing to take proper supervisory duties also has an unshakable responsibility.The fourth part, enlightened by the method of dealing with risk in developed countries to our country and all over the country’s practical experiences.Highlights the United States and Japan practice, they have perfect laws and regulations, clear policy objectives, the Government and civil society assisted investment model and perfect risk spreading avoidance mechanism.The fifth part, to improve the legal control system of SMEs credit guarantees companies in our country.On the basis of drawing foreign experience, make some improvement methods on legal control system to our country.First of all to improve legislation regulating the behavior of security agencies, secondly to increase profitability of a security agency, again to improve the guarantee of risk spreading mechanisms to improve the risk-resistant ability of the guarantee institutions, finally the full set of measures to improve credit guarantee system.