Research On Risk Prevention Of Financing Business In Guarantee Circle Based On Typical Case Analysis

In October 20,2014,the credit risk caused by a large number of credit risks caused by enterprises(without financing guarantee institutions)in some areas of China has brought great risks to the bank’s credit assets.Mutual insurance is an important innovation to solve the demand of small and micro enterprises and rural financial loans,but it has gradually formed the form of Guarantee Circle in some industries and parts of the region,which has become the cause of risk events.Guarantee circle refers to a special interest body formed by multiple enterprises linked by mutual guarantee or serial guarantee.In the way of convenient financing for enterprises,it also brings huge risks to enterprises and banks.There are various reasons for the formation of the guarantee circle,including the business itself,the banking supervision and the external factors such as the economic market.And there are various forms and solutions of various guarantee circles.This paper first introduces the background of this topic and the status of the research at home and abroad.From the formation mechanism and form characteristics of the guarantee circle,we can understand the guarantee circle,analyze the characteristics according to the different forms of the guarantee circle,briefly summarize the reasons for the formation of the guarantee circle,and carefully analyze the reasons for the formation of all kinds of risks and the risk identification of the guarantee circle.Through the analysis of Luoyang A group,Shaoxing Guarantee Circle,Hangzhou Guarantee Circle and other typical cases,this paper puts forward the risk prevention and solutions of the guarantee circle,hoping to identify and prevent the risk of financing in the enterprise guarantee circle,and provide a feasible way to solve the problem of Guarantee Circle.