Research On The Legal System Of Risk Control Of Small And Medium-sized Enterprises’ Indirect Financing

Small and Medium-sized Enterprise financing has been a bottleneckrestricting the development of Small and Medium-sized Enterprises. At present,China mainly relies on Small and Medium-sized Enterprise financing indirectfinancing, namely commercial bank loans. However, Small and Medium-sizedEnterprises own deficiencies, financial strength is weak, unable to providequalified mortgage, it is difficult to find a guarantor as collateral. Coupled withlow credit ratings on Small and Medium-sized Enterprises, in order to solve thefinancial difficulties through commercial bank loans very difficult. The studythat, credit guarantees and warranties insurance system is an effective way tosolve the financing problems of Small and Medium-sized Enterprises. Bothsystems themselves while there are credit risk, operational risk, legal risk andregulatory risk, systemic risk, the existence of these risks indirectly impede thenormal Small and Medium-sized Enterprise financing. In order to prevent andcontrol risks, this paper uses the method of comparative analysis, combined withthe current status quo of China’s Small and Medium-sized Enterprise indirectfinancing risk control, and learn from the advanced experience of the UnitedStates, Japan and other countries risk control, the corresponding proposed theestablishment and improvement of Small and Medium-sized Enterprise indirectfinancing risk warning, risk diversification, risk transfer and risk supervision ofthese four legal system.For indirect financing of Small and Medium-sized Enterprises in the creditrisk, proposed the establishment of legal risk warning system. The legal systemof credit and credit assessment including the legal system, the Small andMedium-sized Enterprise credit investigation system information disclosure lawand the legal system and self-discipline combining these three legal systems are able to effectively control the risks in advance. Information disclosure system isa prerequisite for credit and credit assessment, risk control from the start ofSmall and Medium-sized Enterprises; entry point for the legal system of creditand credit assessment is the construction of social credit system, from thenational perspective of risk prevention; credit from a credit investigation systemguarantee institutions or insurance agencies starting combination of law anddiscipline, the dual constraints, prevention, and control risk.For indirect financing of small and medium business risk and legal risk,risk diversification and risk transfer legal system legal system can effectivelycontrol the risk. Risk diversification for the commercial banks and guaranteeagencies or insurance institution which of both parties. Abroad mainly through asecured loan quota management system and proportional risk guarantee systemto decentralized control, quota management system of guaranteed loans isimperfect, the law generally, can not effectively solve specific problems arise inreality, the proportion of the guarantee has not been established in our legalsystem, the risk-sharing between our bancassurance imbalance. Secured lendinglimits by improving the management system and the establishment ofrisk-sharing between the bank and insurance system, designed to spread the riskthis company or insurance company guarantee commitments overweight.Risk diversification legal system is able to diversify risk and may not beable to transfer security agencies or insurance companies operating risks, whichrequires the transfer of risk constraints legal system. The main risk transfer legalsystem regulating the transfer of risk between mutual guarantee institutions orinsurance companies. The main content includes four systems: a sound legalsystem re-guarantee, counter-guarantee to improve the legal system, the legalsystem and the establishment of reinsurance to establish effective cooperationmechanisms for security companies and insurance companies. Securitycompanies and insurance companies, the insurance company guarantees thecompany’s credit guarantee underwriting, while expanding the scope of business of insurance companies, on the other hand guarantees the transfer of credit riskguarantee agencies, do both.For indirect financing of Small and Medium-sized Enterprises ingovernment regulatory risks, and improve the legal system of indirect financingrisk regulatory Small and Medium-sized Enterprises can effectively prevent andcontrol risks that regard. Current international presence on the Small BusinessAdministration’s regulatory approach, credit guarantee associations regulatorymodel, the credit guarantee fund three mature regulatory model of governmentregulation mode. Learn from the advanced experience of foreign regulators,combined with our regulatory indirect financing of Small and Medium-sizedEnterprises confusion, proposed legislation to improve rank, recommended theestablishment of a unified national legal and regulatory supervision system.Effective supervision, to indirect financing constraints throughout the wholeprocess, risk prevention and control system of indirect financing of Small andMedium-sized Enterprises in general.