Regulation And Legal Prevention Of The Financing Guarantee Company

The financing guarantee company is an effective institutional arrangement to alleviate the problem of financing of small and medium sized enterprises. In recent years, China’s financing guarantee industry has played an important role to promote the development of local economy. But some problems exposed from the underlying of its development have seriously affected the healthy development of the industry. And the defects of legislation have also indirectly caused the chaos of financing guarantee industry. Therefore, the legislation department should summarize experience, thorough research and scientific proof as soon as possible, then introduce laws and related judicial norms of financing guarantee industry, accelerate the establishment of a sound legal system of the financing guarantee industry, create a legal environment conducive to the development of financing guarantee company, and make the supervision and management of state law effective. At the same time, in cooperation with the financing guarantee company, as providers of capitals, banks play a vital role in it. Through the supervision of banks, the purpose of financing guarantee industry risk prevention can also be achieved. Only by multi-party coordination, China’s financing guarantee industry can be introduced to a healthy development road.