Study On Defects Of China’s Financing Guarantee System

Financing guarantee institutions as a organization dedicated to SMEs services, reduce the information asymmetry between banks and SMEs by providing credit to SMEs, and soothing bank credit rationing. Under the strong support of inclusive finance, financing guarantee institutions as an important component of inclusive finance, the sustainability issue is worth studying. Hebei Financing Investment Guarantee Group Co., Ltd.t as the only policy guarantee company which compensatory risk occurred recently, reflects the financing guarantee industry ills.Based on the case of Hebei Financing Investment Guarantee Group Co., Ltd. finishing the review of industry background and company history of the case, with the analyzing by economic theory, the reasons of the default came out to be the defect of guarantee system. Based on this, the article further analizes the causes with the two angles of system design and operation. Analysis believe that under the guarantee system, whose main body is the policy guarantee institution, due to the absence of external evaluation system and supervision mechanism, positioning inaccurate and the absence of risk management will easily lead policy guarantee intuitions to a dilemma. At last the article provides some advices...