Study On The Legal Regulation System Improvement Of Sustainable Development Of Financing Guarantee Company In China

Today,China's financing guarantee corporations that emerged in the market reforms have made great progress after experiencing the three stages: the early stage(1993-2003),the phase of rapid development(2003-2008)and the standardization development phase(2009-so far).By the first part of 2016,the number of financing guarantee institutions in China has reached at 7000,it is projected that by 2020,the guarantee balances of financing guarantee companies all over the country will reach at 5500 billion yuan.On the basis of some basic functions such as increasing credit and spreading risk,financing guarantee corporations have made outstanding contributions in helping SMEs obtain financing easily at a cheap rate,and developing inclusive financial system.Meanwhile,government and financial industry has also paid high attention to the legal supervision of financing guarantee corporations.In February 2009,General Office of the State Council of the People's Republic of China issued Notice on Further Specifying the Supervisory Functions for Financing Guarantee Business,and in March 2010,CBRC and the other six national ministries promulgated Interim Measures for the Administration of Financing Guarantee Companies(including its eight supporting guidelines),after that,local regulatory authorities successively promulgated management rules on local financing guarantee companies,Since then,financing guarantee corporations gained its standardized development.However,with the rapid development of the financing guarantee industry,the interim measures on financing guarantee corporations,which has been implemented for7 years,have hardly met the needs of industry development and regulation in the present and future,in practice,for example,some risks such as operation beyond the scope and high compensation rate has been found frequently.For that reason,on the basics of the big data thinking and research methods of comparative analysis,empirical analysis and normative analysis,according to the basic idea of "identify the problem –find out the cause – answer the question",something must be done.That is to analyze cases involving financing guarantee corporations from many dimensions in judicial practice,summary existing problems in the process of sustainable development of financing guarantee corporations and find out the institutional reasons of financing guarantee corporations' sustainable development obstacles and then improve the existing legal supervision system,Which,whatever in theory and in practice,will be significant for the long-term development of China's financing guarantee corporations,the positive construction of inclusive financial system,and the sustained stability of financial order.At present,there are some problems of China's financing guarantee corporations in practice: The lack of unified regulatory body and regulatory standards;registered capital required are so low that the size of company's funds is mismatching with insured customers' credit needs;So many employees lack the competence of identifying and controlling risk;Do not make specific provisions on the risk-sharing mechanisms between financing guarantee corporations and commercial banks,default risk is almost entirely shouldered by guarantee corporations.All the above questions bring a lot of challenges to the development space of financing guarantee corporations.In view of this,to improve financing guarantee corporations' sustainable development legal system,it is of uppermost priority at this stage to uniform the subject of supervision,raise standard of market access to registered capital,deadline for the capital contribution of shareholders,qualifications of sponsor and employees,establish and improve responsibility sharing and risk mitigation mechanism of financing guarantee corporations,banks and re-guarantee institutions.