Research On SME Financing Guarantee Mechanisms

In recent years, the financing guarantee industry plays a great role in solving the financing difficulties of SME in China and has helped improve social credit system a lot, but t the financing guarantee industry has such problems as weak profitability, bad supervise and something alike. Therefore it is very imperative to build a more robust and effective mechanism for SME financing guarantee. SME financing guarantee mechanism is a systematic work, involving banking and financial institutions, guarantee agencies, SME and the government, so to have a comprehensive analysis is of great necessity.Based on the summary of financial guarantee-related theory, the paper quantitative analyze the key factors of affective SME financing guarantee with multivariate regression model. Using the data of other countries and their lessons the paper proposes the idea of how to build SME financing guarantee mechanisms in China.The study suggests that to innovate mechanisms for financing SME, we must strengthen the exploration and practice with changing the operating mode of financing guarantee institutions, improving the risk prevention and early warning mechanisms of financing guarantee institutions, building a security risk-sharing mechanisms in the between guarantee agencies and commercial banks, regulating the policy-supported mechanisms and enhancing the multi-level SME financing service system.