Study On The Problems And Countermeasures Of Cooperation Of Small And Medium Enterprises (SMEs) Credit Guarantee Institutions And Banks

In the process of small and medium enterprises (SMEs) financing, the introduction of credit guarantee, can weaken SMEs’ problem of incomplete mortgage and lack of credit history, thus improving the credit rating of SMEs. It can also share the risk of loans from financial institutions. Because of this, foreign economists generally believed, either in theory or from business operations, credit guarantees are considered to be a more effective means of the many government policies supporting SMEs’development. In view of the SMEs in China mainly rely on the indirect financing of bank credit, to resolve the plight of SMEs financing, our country started from the1990s to explore the establishment of a credit guarantee system, to enhance the credit rating of SMEs and to solve its indirect financing issues.Over the last decade, the credit guarantee agencies are in rapid growth in number, but also exposed some problems. The banks and the credit guarantee agencies’ cooperation does not go on smoothly in a long time. But as the two major participating subjects in the credit guarantee system, the two establishing stable cooperative relations is one of the bases for the effective functioning of the credit guarantee system for SMEs. If this issue doesn’t have an effective solution, it will directly affect China’s SME credit guarantee system’s role to play in resolving the financing problems of SMEs. It will also affect the healthy development of China’s credit guarantee system for the long term. Thus, through the study of "the cooperation of SMEs credit guarantee institutions and banks" and offer my own proposals is valuable and will has a practical significance.Through the combination of theoretical analysis and normative research, from the different angles of the macro and micro, I do a more in-depth, systematic study. The goal of this paper is to make recommendations to strengthen the cooperation of the credit guarantee institutions and banks and offer some suggestions about arrangements facilitating the cooperation. The paper is structured as follows:Chapter Ⅰ:Introduction. This chapter describes the research background and significance of the study of this topic. On the basis of induction and evaluation of the research at home and abroad, I further put forward the ideas and methods of this paper.Chapter Ⅱ:Theoretical analyses of the cooperation of SMEs credit guarantee institutions and banks. This chapter begins with the significance of the existence of the credit guarantee institutions based on economic theory. Then, after the analysis of the current situation of China’s SME financing, as well as the reason of the financing dilemma, pointing out that the building of credit guarantee system is the objective requirements of the development of SMEs. Finally, from the different angles of the SMEs, banks and other financial institutions as well as government, I elaborated the necessity to establish a stable and cooperative relation between the SME credit guarantee institutions and banks.Chapter Ⅲ:Analysis of problems and obstacles of the cooperation of SME credit guarantee institutions and banks. Beginning with a brief analysis of the development situation of China’s credit guarantee system and its problems, the subject of this paper came out. Then from both partners of the cooperation-banks and credit guarantee institutions, as well as the external environment, I further analyzed the obstacles in the cooperation, and summarized its problems.Chapter Ⅳ:Comparison and Enlightenment of the cooperation of credit guarantee institutions and banks abroad. This chapter focuses on the cooperation of banks and the credit guarantee institutions of Japan, the U.S., South Korea, and Germany, summarized the favorable conditions of each country to facilitate such cooperation, as well as their specific form of the collaboration. Finally, based on this comparative analysis, I summarized some useful inspiration and reference. The purpose of writing this chapter is that through this comparative analysis, summarizing the favorable arrangements to promote the cooperation from abroad and offering my own proposals about promoting the cooperation in our country based on the earlier analysis of the impediments of the cooperation in our country.Chapter Ⅴ:Policy recommendations to strengthen the cooperation of banks and the credit guarantee institutions in our country.The major recommendations of this paper are mainly as follows: Firstly, integrating the policy guarantee institutions to establish regional credit guarantee institutions (or the Fund), as the main unity to establish a stable cooperative relations with the bank.Secondly, in addition to local funds as the main support of regional credit guarantee institutions (or the Fund), some donor funds will also be offered by the cooperative financial institutions according to certain standards. And the bank should bear part of the risk in the guarantee business. This will help build bilateral reciprocity mechanism between the banks and the regional credit guarantee institutions.Finally, recommending the use of the existing network of financial institutions to carry out specific guarantee business.Lack of favorable data, more in-depth quantitative analysis to illustrate the problem cannot be done. In view of the limited capacity and time, I also failed to carry out in-depth research to obtain first-hand information for a more in-depth analysis of the obstacles of the cooperation of the banks and credit guarantee agencies.