The Puzzledom Faced By Policy-based Guarantee Institutions And Institution Breakthrough

SMES take an important part in national economy. However, the poor financing ability, insufficiency credit ability and limited guarantee ability impact their own development. Governments take a series of measures to support the development of SMES and solve their difficulties in financing guarantee implemented. Policy-based guarantee institutions help SMES to break the bottleneck in financing. Assurance in China starts late and develops slowly, since1993, development of guarantee agencies, its prominent role increasingly, but it also faced with many problems. It mainly due to policy issues related to the qualification of guarantee agencies in our country also is a big controversy. Therefore, this paper combined with the problems arising from the development, centering on the the qualification of guarantee agencies, analyzes the development dilemma in order to show some suggestions.The dissertation is divided into three parts:Part Ⅰ mainly implies the Policy-based guarantee institutions’ background and its function of economic promotion; Policy-based guarantee plays role in trimming market information, allocating resources, and guiding economic development.Part Ⅱ analyzes the Policy-based guarantee institutions’ current situation and difficulties in its development.This part analyzes combining with the Policy-based guarantee institutions’ small scale, poor ability to guarantee, business scope confusion and other issues, from the nature of Policy-based guarantee institutions, registered capital, and risk mechanism.Part Ⅲ combined its importance with its development dilemma shows some Suggestions on perfecting Policy-based guarantee institutions. First, registered capitals the basis of Policy-based guarantee institutions’ qualifications of subject, so it should make sure its registered capital in place. Second, its qualifications of subject limited to its scope of business, so should clear its right skills. Third, Using financial leverage principle analyzes the value of the guarantee multiples, it reflect s the size of its guarantee rights, so ought to be strict with policy-based guarantee institutions guarantee multiples. Finally, the paper combined with asymmetric information and bank credit rationing model proposed the necessity of risk allocation proportion and counter guarantee. And the importance of perfecting risk prevention mechanism and sharing mechanism. Expecting these opinions can help the policy guarantee agencies out of trouble.