The Growth Capacity Evaluation Study On The Credit Guarantee Corporation Of Sichuan Province

The small and medium-scale credit guarantee corporations are very helpful in improving the financing environment of the SME. They can solve many problems, such as the insufficient of the information transparency, the low degree of comparison and the lack of the mortgage collaterals. As an emerging profession, the credit guarantee industry is growing rapidly in having promoted the development of SME. However, there is a disparity between this kind of growth and our request growth for establishment of national SME credit guarantee system.The credit guarantee profession of our country has been Started off from the SME Financing, and many credit guaranty corporations are still in the initial stage at present. we confront how to make the credit guarantee develop healthily to displays their social function in our finance market. We consider that this is related with the government policy orientation on the guarantee profession. We are also in face of how to solve the issue of information asymmetry between the government and the guarantee corporations, which was considered to be the bedrock of the government legally supervisions, standardizing professionalism and the credit guarantee’s cooperation operation. On the other hand, we should have a relative consummation mechanism to carry on the objective evaluation of credit guarantee corporations’growth capacity in the progress of developing the guarantee profession. It is significant to carry on the evaluation of credit guarantee corporations’growth capacity, which has the following benefits:(1) facilitating governments to discriminate different types of guaranty corporations, optimize the industrial structure of the guarantee industry. So that those with good development potential guarantee companies have access to more policy and financial injection.(2) In terms of financial institutions, which will help them to increase the level of the corporations’credit risk control and to improve the efficiency of bank credit allocation of funds. (3) In terms of credit guarantee corporations, which can help their core management team to improve operational decision-making efficiency, risk management-weighed against benefits by providing more practical information, and to bring about sustainable development of the credit guarantee corporations.As the main microscopic body in the guarantee profession, the credit guaranty corporation’s growth can display important influence on the social function. The main evaluation object of this paper is the credit guarantee corporations which mainly engaged in financial guarantee business, the main evaluation target is their Growth capacity.First, we adopt single-factor method which is commonly used. Through the single-factor analysis of the corporations’financial and business data, we get a general understanding about different aspects of the guarantee company’s history operating conditions. Afterwards, we used efficiency coefficient analysis and factor analysis method which is the extending methods. By means of analyzing the guarantee corporations’characteristic element of growth capacity and combining different factor together, we get the overall scorings of the selected sample corporations. Simultaneously, we validated each methods, verified the validity of its evaluation and eventually arrived at a more general scientific evaluation which achieved the growth capacity comparison among these corporations. According to these discoveries, We put forward some propositions about how to perfect China’s credit guarantee system.In the empirical research, taking account of the elements of growth capacity system which based on the quantitative analysis of single factor of general indexes and financial indexes, we adopted efficacy coefficient method and factor analysis to get comprehensive growth capacity evaluation of 10 furniture representative credit guarantee corporations in Sichuan Province.From the results on these two empirical methods, we can concluded that efficacy coefficient method have more advantages in the comprehensive appraisal aspects than the single-factor analysis, but its weight set made by the expert scoring method, with a certain degree of subjectivity. In contrast, with objective empowerment, the factor analysis utilizes rotation technique to help explain the factors, which should be more advantageous in the interpretation. Therefore, combining the two approaches in the empirical process can we get a more objective and true conclusion.