Financial Guarantee Company Regulatory System Research

Financial guarantee company is a kind of organizational form of guarantee institutions,which is high-risk and certainly needs a set of effective supervisory system. Nevertheless, thesupervisory system of financial guarantee company is of the weakiest systems in ourcountry’s. the system upon financial guarantee company still has a lot of problems. Therefore,to perfect financial guarantee company supervisory system is greatly meaningful ffor financialrisk precaution and financial safety protection.This thesis put the analysis of financial guarantee company’s definition and characters aspremise, states types and its juridical status. And on the basis of the above, it analyses indetails on our country’s financial guarantee company’s chaotic phenomena and system causeduring its practice. And based on developed countries’s and areas experiences, it proposessome suggestions on perfection of our country’s financial guarantee company’s supervisorysystem.This thesis composes4sections.In the first section, it first introduces financial guarantee company’s characters anddefinition; second introduces our country’s financial guarantee company’s types and itsjuridical status. The author thinks that the organizational form of enterprise corporation is thebest choice for our country’s financial guarantee companies. The organizational form ofenterprise corporation is better for goal achievement for guarantee companies. Finally, itanalyses the supervision necessity from two aspects: financial guarantee company normalfunction realization and negative control effect.In the second section, it firstly analyses some chaotic phenomena during the practice offinancial guarantee companies’ operation. Second it states our country’s financial guaranteecompanies’ legislative status and basic components of current supervisory system. On thisbasis, it analyses existing problems of our country’s financial guarantee companies’supervisory system. The problems are: first, laggardness of legislation on financial guaranteecompanies’ supervision, meanwhile relative standards are of low level and decentralised and chaotic. Second, unclear supervisory body, and local government has the supervising rightwhich is easily lead to local protectionism. Third, unsoundness of financial guaranteemarket’s supervisory system makes the market cannot fully play its restrain role. Fourth, lessof interaction and communications among guarantee associations make it hard to shareinformation and play limited functions on supervision.In the third section, it first analyses supervisory system of developed coutries’ guaranteeconmpanies. Through analysing supervisory system of developed coutries’ financialguarantee conmpanies, it concludes financial guarantee conmpanies’ experiences ofdeveloped coutries and areas and enlightenments to our country. First, to adopt seperatedsupervision. Second, to clear law and build sophisticated financial guarantee companiessupervisory system. Third, to play market discipline role on financial guarantee companies.Fourth, to establish guarantee industry associations to promote self-discipline of the industry.In the fourth section, it proposes some suggestions to perfect our country’s financialguarantee conmpanies’ supervisory system, first, to perfect financial guarantee companysuperviasory legislation system; Second, to establish sophisticated market discipline systemand specify access, daily operation and market exit supervisory system of financial guaranteecompany market; third, to strenghen self-discipline of guarantee industry associations, fullyplay its role in supervision; fourth, to clear the role of government, and to enhancecoordination among different supervisory bodies.