The Mechanism Research Of Joint Guarantee Loan Of The Small And Micro Enterprise

Financing difficulties of the small and micro enterprise is common problems weface in the development of the world economy, and the development of them play aninevitable role in the economy development. On one side, they are the main channelto solve the employment pressure, survey shows that75%of employment opportunityis provided by them; on the other side, them make a huge contribution to the tax,which provide half of the country’s tax. For the significance of them, our governmentpay much attention to the financing difficulties of them, and ask our commercial bankoffer innovative financial tools to solve this problem. Under this background, Jointguarantee loan arise at the historic moment. It not only solve the problem, but alsooffer a new profit growth point to our banks. Thus, it’s significant to study this newmechanism.This article firstly give a comprehensive state to the theory of joint guaranteeloan, separately introduce the theory of Social constraint mechanism, entrusted agency,joint and several liability and the game theory, this part is a basic for the analysis inthe later.Secondly, this article analyze the current situation of our small micro enterprisefrom the policy and finance environment it faced and the group lending procedure ofour country, at the same time, this article give an analysis to the pattern of grouplending, introduce the foreign experiences that we can use for reference.After that, this paper give a detail analysis to the risk of joint guarantee loan andthe reason of it, on this basic, On this basis, we give a game theory analysis of it fromthe joint and several obligations and the progressive loan side, we find the joint andseveral obligations is useful to solve the Adverse selection and moral hazard problemsbetween banks and small and micro enterprises caused by information asymmetry,and the progressive loan improves the ability of banks to participate in the game withsmall and micro enterprises, make the game between bank and small and micoenterprises become infinitely repeated game instead of a one-off game, this articleprove this through the group lending case of LiuYang China citic bank.Lastly, to solve the problems and the potential risk of the group lending in ourcountry, this article try to offer several policy suggestion.