The Research On Legal System Of Risk Prevention Inmicro-loan Guarantee Insurance

To promote the reform of the financial system is an important subject in the three s ession of the 12 th National People’s Congress and to improve the micro-loan guarantee insurance system is an important program of the reform of China’s Insurance system. I n the background of lasting promotion of the cooperation of bank and insurance, the micro-loan guarantee insurance have become a major intermediary propelling this coop eration. The carryout of micro-loan guarantee insurance system in China will be benefi cial for the transaction risk and the reformation and innovation of insurance system. The combination of insurance and loan has three advantages: extension of financial ser vices, solution to the dilemma of financing difficulty and safe operation of bank funds which realize the win-win situation of small and micro companies, banks and insurance companies. However, there are some disadvantages including market, credit and operat ion risks resulting from the absence of legal system of insurance risk prevention and th e credit legal system and internal control deficiency. The purpose of this paper is t o make an analysis on the risk and current situation of micro-loan guarantee insuranc e system and make some suggestions in reference to foreign loan policy.This thesis can be divided into four sections:Section one: An overview of small loan guarantee insurance and its risk prevention. Th e theoretical basis is introduced and market strength is highlighted. The necessity of building l egal system on risk prevention of small loan guarantee insurance is emphasized through analy zing market risk, credit risk and operation risk.Section two: The analysis on the current situation of insurance risk prevention leg al system. The article made an analysis on market risk, credit risk and operation risk fr om central and local perspectives including the determination of insurance rates, insuranc e companies, credit law, information oversight mechanisms, internal control mechanisms an d the professional knowledge and skills of the practitioners.Section three: The inspiration from oversea legal system of small loan guarantee ins urance and its risk prevention. Based on the experience from American, Japanese and Kore an, the article made some summaries and gave some advices.Section four: The detailed path of the improvement of micro-loan guarantee insuran ce system.Based on foreign experience, the article made the suggestion on the detailed p ath for the solutions to market risk, credit risk and operation risk.