A Study On The Supervision Of The Guarantee Company In China

With the economical development and the increasing demand for security, especially in the background of monetary deflation, the rapid growing demand for financing assures in the small and medium-sized enterprise provides an external environment for the mushrooming development of guarantee companies. However, behind the prosperous development of guarantee companies, there is a huge latent risk. After almost20years of development, guarantee companies has extended the phase of "to be standard in developing" to the phase of "to be developed under the guidance of norms". Especially during the past two years, the risk of operating guarantee companies is exposed day by day, inserting serious influence to our society. Therefore, the government should strengthen the supervision of guarantee companies, and take effective measures to prevent and dissolve the risk systemically.This thesis states the definition of guarantee companies, and discussed the necessity of enhancing the supervision of guarantee companies by taking the advantage of the information asymmetry theory, risk shifting and diversification theory, financial fragility theory and the theory of protecting consumer. By analyzing the bank-guarantee mode and folk-guarantee mode of the guarantee companies, this thesis points out that the bank-guarantee mode may cause new information asymmetry, as well as the moral risk in the bank, small and medium-sized enterprises, and the folk-guarantee mode may promote illegal fund raising, illegal public deposit absorption, etc. The discussion on the regulatory status and the existing regulatory problems of guarantee companies is carries on from the perspectives of from the law level, regulatory agencies, regulatory content, regulating means, industrial self-discipline, etc. and the experience getting from the development and supervision of the guarantee companies in the United States and Japan has summarized up. Finally, based on the above analysis, this thesis puts forward a series of advice on how to perfect relevant legislation of guarantee companies, how to establish the regulatory framework of those companies, how to strong their regulatory subjects, how to strengthen the regulatory function played by market discipline as well as how to perfect the systems for the development of those companies, etc., all of which has certain practical significance to strengthen the supervision of the guarantee companies in our country.