The Research On Mechanism Of SME Cluster Mutual Guarantee Financing's Risk Contagion And Its Countermeasure

Mutual guarantee financing provides a solution to the problem of difficulty in obtaining bank financing for small and medium-sized enterprises(SMEs).However,there are still many deficiencies in the development model of mutual guarantee financing in China compared with abroad which results in greater risks when SMEs participate in mutual guarantee.When contagion occurs because of risk accumulation in the mutual assistance network,it will affect the development of other enterprises and even the local economy.As a normal auxiliary mechanism,mutual guarantee should be conducive to meet the financing requirements of SMEs in cluster,but it has led to a frequent outbreak of risk contagion which harms SMEs' development.Therefore,how to prevent and govern the mutual guarantee financing risk contagion of SME cluster has become the focus and hot spot of attention for all social circles.The main conclusions of this paper are as follows:(1)Mutual guarantee financing provides a solution to the problem of difficulty in obtaining bank financing for small and medium-sized enterprises(SMEs).However,there are still many deficiencies in its development model resulting in risk contagion,the main performances are: first of all,SMEs rely heavily on mutual guarantee financing ignoring actual guarantee ability and their internal supervision mechanism is missing;secondly,government departments' insufficient supervision mechanism;then financial institutions are slack in qualification examination,lack of identification of guarantee events and lagging behind the disclosure of credit risk to enterprises;finally the supervision mechanism of guarantee institution is not perfect and the flow of information is not smooth.(2)The participation in mutual guarantee,control of the major shareholder to enterprise,refinancing capacity and cash holding,all have a different degree of impacts on risk contagion,in which the effect of risk contagion is positively correlated with the former two,and is negatively correlated with the latter two.(3)The prevention and governance for the risk contagion of SME cluster mutual guarantee financing must be promoted in many ways,such as enterprises,guarantee institutions,financial institutions,and government departments,etc.