Study On The Legal Problems Of The Financing Guarantee Corporation In China

The rapid development of China’s financing guarantee industry has dramaticallychanged the way of loan financing for SMEs,improved the financing environment forSMEs,and promoted the booming of china’s financial industry,thus,the financingguarantee company is gradually becoming an important support for SMEs to credit.However,the legal regulation of the financing guarantee company currently are veryweak,so,this paper focuses on the legal issues of financing Guarantee corporationsupervision.Apart from the introduction,the paper are divided into four parts, the mian ideas areas follows.First,summarizes the connotation of a financing guarantee company,type ofbusiness,the corporate governance structure and operational processes,and analyzes thenecessity and feasibility of financing guarantee company law regulation.The authorpointed out that the financing guarantee business is a Guarantee Corporation of financialservices.Due to inability to repay the loan guarantee responsibility,it is a kind ofbusiness which should be charged.Risk of financing guarantee determines the necessityof the supervision;the increasingly perfect legal supervision and the accumulation ofexperiences determine thefeasibility of supervision.Second,introduces the supervision legal system of financing guarantee corporationin developed contries, for example, the supervision system of American Small BusinessAdministration and Gapanese Guarantee Association. I think what we can learn fromthe two countries mainly lies in the following two points,the first point is that thefinancial department of the government and relevant departments of GuaranteeCorporation also have supervision right;the other one is that through scientific and strictlegislation to supervision authority and makemeasures to prevent security risks.Third,analyzes of the financing guarantee company law arising in the course of theregulatory issues raised in the legislative regulation,legislation exists lag is tooprincipled legislation,legislative policies from different departments and levels of low-potency problems; In terms of the regulatory body, the existence of the regulatory bodydoes not clear the problem; regulatory content, specifically the existence of low barriersto market entry,risk management is not standardized,the compensation mechanism isnot perfect,imperfect internal risk dispersion mechanism immature issues; In terms of industry self-regulation,there is a limited role in the existing association and theNational Association of the problem of unbalanced development of the individual;Market regulation, the presence of imperfect information disclosure mechanism and asound credit rating system is not the problem; Finally, in the external environment, thepresence of poor financial environment, supporting policies less support SMEs and poorreputation.Last, in view of the above problems, the legislative system from perfect, clearregulatory body, thinning entry and exit system, establish risk control mechanisms andaccelerate the construction industry associations to strengthen self-discipline, increaseaccountabilityefforts to further improveother aspects of research.