The Research On The Legal Issues Of Financing Guarantee Corporation Risk Control

Small and medium-sized enterprises(SMEs)are an important part of China's national economy.They play an irreplaceable role in promoting scientific and technological innovation,absorbing employment and maintaining social stability.The financing difficulty is the most prominent limiting factors of small and medium-sized enterprises development.Financing Guarantee Corporation help enterprises to obtain loans,alleviate the financing problem of small and medium-sized enterprises by increasing credit for enterprises.Financing Guarantee Corporation are important parts of SME credit guarantee system.But the financing Guarantee Corporation bear the risk which the bank is unwilling to take for obtaining benefits.They manage credit assets,and their high risk is recognized by the world,facing credit risk,liquidity risk,operational risk and other risks.The establishment of a complete financial risk control legal system is a prerequisite for the sustainable and stable development of the security industry.China has no specific law on the financing of Guarantee Corporation,and mainly depend on departmental regulations and other normative documents or policies to regulate the financing Guarantee Corporation,which has caused a lot of problems,for example,lowering the level of legislation,relying on the grand words instead of the rule of law,with the result of lacking practical operability and existing some loopholes in risk prevention link,risk dispersion and compensation links.According to the development situation and legal environment of the financing guarantee industry in China,we should establish a complete risk control legal system,from the risk prevention to the internal risk control and then to the risk diversification and risk compensation.First,we should improve the company's access threshold,clear business scope to guard against risks from the source.At the same time,we should also improve the company's internal governance structure,adopt a scientific decision-making process,refine the system of separation of the censor and compensation,and clear the legal responsibility of managers.In addition,we should redefine the security loan limit standards,build and improve the re guarantee system,change the proportion of the responsibility which the bank and the Financing Guarantee Corporation should take,perfect the Counter guarantee system,to spread the risks of Financing Guarantee Corporation.Of course,in view of the benefits brought by the financing Guarantee Corporation to the community,we should learn from the United States and Japan's government compensation system to finance the Financing Guarantee corporation,to ensure its healthy and sustainable development.