Risk Analysis On The Cooperation Of Bank And SME’s Financing Guarantee Agencies From Perspective Of Commercial Banks

With deepening development of China’s market economy, Chinese small and medium-sized enterprises have boost rapid growth in quantity and quality; however, the difficult financing of small and medium-sized enterprises has been an important factor restricting the development of small and medium-sized enterprises. Under such circumstances, financing guarantee agencies spring up, providing guarantee for small and medium-sized enterprises, and helping small and medium-sized enterprises successfully get funds from banks and other financial institutions. It can be said that financing guarantee agencies have become a powerful weapon for the financing of small and medium-sized enterprises. However, the springing-up of guarantee agencies has exposed many problems, such as unsound law and statute as well as social credit system, lack of effective administration, nonstandard operation, loose internal management, weakness in risk identification and risk control, violation of law and regulations, secret removal of capital, illegal financial transaction, illegal financing and release of usurious loans. Recently, several companies have suffered from guarantee crisis, such as China Guarantee and Huading Group, which brings about serious impacts on guarantee agencies and banks. Thus, it is with great realistic significance for the whole banking industry to consider the problem that how to control the risks of guarantee agencies in context of increasing cooperation between banks and guarantee companies. As the direct issuer of loans, banks have to consider that how to control the risks of guarantee agencies. Based on the risk analysis of financing guarantee agencies, banks have to better manage the risks of financing guarantee companies from aspects of problems existing in admission and sustainable tracking management. By means of investigation, Internet and library, the author makes efforts to get abundant and detailed materials; and by means of on-site interviews to related operating department of A bank, the author achieves much first-hand information. In addition, the author affirms the ideas by analyzing related cases. Content:at first the author introduces the research subject’s background and significance,meanwhile the domestic and foreign research situation, including ideas and methodology, briefly explaining the basic frame and innovation of the research. Secondly, the author briefly explains relevant concepts of SME’s financing, as well as the definition of its features, roughly introducing the development history of the SME’s financing guarantee agencies. Thirdly, the author makes a detailed analysis and introduction on current situation and reasons for the risks of SME’s financing guarantee agencies. Fourthly, based on the analysis on the mode and risks for the cooperation between commercial banks and SME’s financing guarantee agencies, the author puts forward coping strategies for it by using a case of A bank. Finally, taking A bank as the example, the author makes an analysis on the control operation for risks of cooperating with SME’s financing guarantee agencies. Moreover, by studying the admission scoring table and dynamic supervision of guarantee agencies, as well as the management of guaranteed business and cross-regional guarantee agencies, the author carefully displays the operation for risk control of A bank on guarantee agencies.