Research On Financing Function Of China’s Credit Guarantee Organizations

Small and Medium Enterprises (SMEs) play a very important role in the economic and social development, economic growth style transition and industrial upgrading. At the same time, the development of SMEs also faces many difficulties. Difficulty in financing is the most prominent problem for the most SMEs. The development of credit guarantee organization is one of the effective means to solve the financing problem of SMEs. Constructing credit guarantee system and introducing the third party guarantee as a bridge between the financial institutions will help to ease the difficulty of collecting fund for SMEs.China’s credit guarantee system began in the1990s. So far, the credit guarantee organizations have developing for twenty years. Now a credit guarantee system with the policy guarantee organizations as the principal part, commercial and mutual guarantee organizations as the important complements. The system has played more and more important role in easing the financing difficulty, reducing the credit risk of bank. However, there has been many worrying problem in the development process of the credit guarantee organizations. Thus, many scholars began to doubt the function of guarantee organizations. With Liaoning Province as the study subject, this paper aims at exploring whether the financing function of credit guarantee institutions exists or not. And if it does exist, find out how well the function works. This paper studies on the finance function of guarantee institutions combining their own operating conditions with survey methods. The ultimate purpose of this paper is to explore effective measures to enhance the operational capacity, raise the level of risk control and scientific decision-making for the organizations and improve the credit guarantee system. So that we can promote the healthy development of guarantee institutions and build a good platform for the development of SMEs.There are five sections in this article, and the main contents of each part are as follows:In the first part, this thesis expounds the research background and significance, summarizes and analyzes the related literature at home and abroad, and explains the innovation of this article. In the second part, this thesis introduces some basic theory related to credit guarantee, and expounds how guarantee organizations ease the financing of SMEs. Then this part analyzes how guarantee organizations own operating conditions influence their finance function.The third part is the survey design part. After introducing the background and purpose of investigation, this chapter formulates the survey plans, including the sample selection, the survey methodology, and the design and issuing of questionnaire.The fourth part is the analysis of investigation, consisting of two parts, one is based on the results of questionnaire survey on credit guarantee organizations, and the second is the analysis on questionnaire survey of SMEs.The fifth part is the survey conclusion. Based on previous survey analysis, this chapter finds out the operating problem of guarantee organizations, studies on their demands, and ultimately makes a conclusion on funding validity of credit guarantee organizations of Liaoning Province.The sixth chapter is to put forward policy recommendations for the healthy development of credit guarantee institutions, considering the cooperating improvement of guarantee organizations and the interest coordination among the credit subjects, and learning from other success guarantee modes.