Smc Its Guarantee Risk Management Research

In building China’s new countryside, the three major rural participants, from farmers, rural specialized cooperative associations to locomotive rural enterprises, are all shackled by various rural financing barriers. To remove the bottlenecks and to channel more financial credits towards "San Nong", namely, agriculture, the farmer and the countryside, Chinese governments at all levels have made sustained, fruitful efforts to facilitate the establishment of specialized institutions for rural credit guarantee (RCG) towards a more sophisticated RCG system, thus performing more effectively government’s financial functions in empowering and enabling "San Nong". As one of the major enablers, the Supply and Marketing Cooperative (SWC) plays an important role in developing rural economy.By virtue of birth, SMC is an economic agency that assumes the dual responsibilities of asset management and rural-oriented services. Therefore, it has institutional strengths both as an actual executive and effective actor of government-led, policy-driven agencies to enable RCG and that explains why SMC is closely engaged in setting up and managing RCG companies as a market player.With the recent development of rural credit guarantee business, all kind of risks arise. How to effectively manage and control guarantee risk become a key issue. The paper takes Hangzhou Supply and Marking Cooperative as an example on the basis of specific background and environment, examines the current situation of rural credit guarantee business, summarizes the behaviors and causes of rural credit guarantee and analyses the pros and cons of the measures to prevent rural credit guarantee risk. As the target of rural credit guarantee business are disadvantaged agriculture, farmers and agricultural products, measures to build a complete risk management and control system for rural credit guarantee are required.