Research On Credit Guarantee Mode Of Medium-Sized And Small Enterprises In China

Since more than30years of reform and opening up, China’s economic is developing sustainedly and rapidly. With the continuous improvement of the socialist market economy, China’s small and medium enterprises played an increasingly important role in the market economy. Increased competition makes the rapid development of small and medium enterprises at the same time, has also exposed a series of unavoidable problems. Financing has become a major bottleneck of small and medium enterprises’sustained and rapid development. And financing issue has been an important issue to be solved urgently for small and medium enterprises around the world. Related professionals put forward their own solutions respectively from different point of view. Among them, the introduction of guarantee agencies for small and medium-sized enterprises to provide loan financing guarantee, becomes more effective solution. Through the analysis of credit guarantee theory, the essay draws the conclusion that the introduction of Credit Guarantee in bank credit will not only decrease difficulties of credit but also avoid adverse-selection risk in credit market effectively. And concluded that security agencies can identify SME risk better than banks, which contributes to effective functioning of security agencies; at the same time, security agencies’status and the ratio of risk in collaboration with the bank and insurance company are key factors that restrict the effectiveness of security institutions in credit markets. This article first analyses the system environment of the effective operation of the credit guarantee model using Game Theory. Through the game model it describes the essence of the party game and payoff function. And it summarizes main factors and constraints of restricting each party action choice:the probability of guarantee agencies to evaluation of small and medium-sized enterprises to keep faith, the amount of warranty and premium income. At the same time, in dynamic game model, the Security Agency operations selected factors should also be included when the guarantee that enterprises are low risk and choice for enterprise security cooperation bank selection probabilities of loans and guarantee that enterprises are high risk and probability to select a guarantee cooperative bank select loans. Then, this article summarizes the advantages and characteristics of the international advanced guarantee model and operation system. Meanwhile, this article analyzes the status of guarantee model, and the existing problems and their causes. Finally, this article proposes a new point which is the new Commercial guarantee mode should be a Sustainable Development mode. This article systematically elaborates the features, operation, effective theory basis and comparative advantages of new commercial security mode. Then it further points out the guarantee system, with new commercial security model as the main body, policy security mode as strong backup force, and mutual assistance warranty mode as useful complement, is most suitable for the development of Small and Medium-sized Enterprises Credit Guarantee Industry.