Study Of Credit Guarantee Institution Supervising System In Henan Province

To choose the regulation of credit guarantee companies (GCs) for SMEs of Henan province as thestudy topic should be the category of financial regulation. Today, domestic SMEs development is very fast.But, because of unfavorable external conditions and internal weakness, a major issue they face is financingdifficulty, with loan difficulty as its main problem. The most fundamental reason is hard to get guarantee,while an important way to solve this problem is establish GCs for SMEs. The development of GCs in chinais based on this background. Though the starting is late and the development period is short, this industrydevelops very fast. Just in several years they appear in everywhere in china, with the number in Henan thelargest. However, due to the lack of fund and specialists, combined with many other reasons such as poorsocial credit, imperfect law systems, and insufficient social reorganization and valuation, the overalldevelopment level of this industry in china is quite behind those in developed countries and areas likeTaiwan, Japan, America and Europe.This paper analyses the current regulatory situation of SMEs GCs in Henan, point out its existingproblems and weakness. With the comparison with regulatory methods and systems of developed countriesand areas, absorption and reference to advanced domestic and abroad financial regulating theory andexperience, then make innovations, the paper put forward regulatory measures that comply withthepractical regulatory situation of SMEs GCs in Henan.This paper systemically introduces the current regulatory situation of GC in Henan, analyzes financialregulation with theories, presents the necessity of regulating GC and related theories and measures, andelaborates the necessity and urgency of bringing SMEs GC into financial regulation. It, using the method ofcomparative analysis, also analyzes the living environment of SMEs GCs in Henan and discloses further theexternal and internal risks that SMEs GCs in Henan face. With the method of case analysis, this paper analyzesHenan GCs’external&internal risks and their causes, and then presents the weakness of financial safety controlof SMEs GCs in Henan. Based all above,it proposes new financial safety controlling measures andcorresponding implementation plans for SMEs GCs in Henan.