Research On Risk Control Of Financing Guarantee Company Business

Small and medium-sized enterprises (SMES) amount 90% of the total national enterprises and create more than half of the country’s GDP, it also solve the more than 70% of the country’s urban and rural employment problem, however, the expensive of financing and financing hardship has been a problem in the development of small and medium-sized enterprises. To solve the problem of financing difficulties of small and medium-sized enterprises, countries around the world generally adopt the model of the financial support of credit guarantee, which means that the credit guarantee company provide credit services for financing of small and medium-sized enterprises through sale their credit, in order to provide credit guarantee for the small and medium-sized enterprises that are lack of collateral but have considerable market potential and development prospects. As a financial intermediary financing guarantee company, it plays an important role in helping financing development of small and medium-sized enterprise and spreading the credit risk in financial institutions at the same time, it also obtained good social effect.After rapid development of 23 years of financing guarantee companies in the country, it still have problems of the small scale of enterprise, weaker operators and inadequate guarantee function in the fast development of the guarantee business; Guarantee business has the characters of highly concentrative and lower creativity in products; Guarantee business has high compensatory probability and low recovery rate, and the loss ratio is high; the internal controls of the guarantee business are unsound; the risk management ability are weak, and so on. Just for these problems in the development of the guarantee business, which lead the feigned capital contribution, disaggregate capital fund, make customer margin in high risk, offering cash rewards with high interest and some other illegal behavior like lend out money at high interest, which harm the reputation of guarantee company in public, and hinder the orderly conduct of guarantee business.At its root, the financing guarantee industry is management risk industry in nature, which determine it faces various risks in the development of financing guarantee business, including the risk from the government’s lack of legal, changeable policy and risk from administrative orders that intervene the development of business directly; it also has risk from the market risk; the poor cooperation from the bank-insurance; it has credit risk from insurance business with inherent problem; it has risk from guarantee company with weak strength that can not compensatory the debt, it has risk from confused governing structure, irregular operations and unsound internal control, it also has risk from moral hazard from employees that only pursuit business quantity. Guarantee business developed in a variety of risks and have many difficulties, the main risk factor is the unreasonable system design, excessive private enter of capital, which lead the irregular operations; legal deficiency and excessive supervision, and leads the absence of professional supervision at last; the concentration of business and unitary profit model bring the concentration of the risk; Low magnification and lack of risk compensation mechanism lead to the imbalance of risk income; With the guarantee exist in name only, and difficulties in counter guarantee disposal, it has no effect in risk transfer.Based on the above analysis of the risks and reasons in the development of financing guarantee company, to strengthen guarantee business risk prevention, this paper put forward some measures from six aspects:first, improve legislation and raising the level of law, Raise the level of industry professional regulation; Second, reduce business concentrative degree and innovative the business model, and add the profit of the guarantee company; Third, strengthening the coordinating with bank guarantee; Fourth, perfect the compensation mechanism, compensate the risk from guarantee company and build risk sharing mechanism; Fifth, perfect risk management system and improve the ability of risk control; Sixth, improve the staffs professional quality.