The Research On Sustainable Development Of Financing Guarantee Industry In Henan Province

Since the implementation of China’s reform and opening up policy, small and medium enterprises(SMEs) occupy an important position in the national economy, however, SMEs in China have been facing financing difficulties for its own reasons, and financing guarantee industry has become an important option to alleviate these problems. Financing guarantee activities fully reduced the risk of bank loan to SMEs; reduced management cost and increased working efficiency under the circumstance of asymmetric information. Meanwhile, financing guarantee companies enhanced the SMEs’ credit, providing them with great deal of financing convenience and insurance, social resources can be optimally configured and social financing efficiency gain great development.After continuous exploration and growth, today’s financing guarantee has become a new industry which is beginning to take shape, greatly eased the financing difficulties predicament of SMEs in Henan Province. However, for some reasons, guarantee companies going bankrupt and company’s executives disappearing have been happened continuously in Henan in recent years, which leads the whole industry to a low social credit and hard to realize sustainable development. Therefore, how to help financing guarantee industry in Henan solve the problems fundamentally, open a road for the sustainable development of the whole industry to realize the combination of economic and social benefits is a subject which the financing guarantee industry needs to focus on.Most of the domestic articles about financing guarantee industry mainly aims at China, and mainly focus on the risk management system and legal supervision, with less discussion the sustainable development of guarantee industry of an area and no articles about the sustainable development of financing guarantee industry in Henan province. This paper takes advantage of literature inductive deductive method, introducing and summarizing the developing situation and problems of Henan financing guarantee industry, and analyzing the reasons of kinds of problems from the respective of four influencing factors on sustainable development of financing guarantee industry, which includes policy supervision, bank, SME and guarantee industry; pointing out that because of the defection in policy and legal system, the unequal cooperation between banks and guarantee industry, the lack of credit of SMEs and the lack of risk control ability of financing guarantee organizations that limit the sustainable development of financing guarantee industry in Henan province. In order to come up with strict control on tax benefits, promotion of equality and cooperation, strengthening the credit system construction and professional, diversified policies of operating financing guarantee organizations to kick off the stumbling blocks in development of financing guarantee industry, realizing industry sustainable development.