Legal Supervision Of Financing Guarantee Companies

The financing guarantee company has greatly improved the situation of financing difficulties for SMEs,and also has the function of diversifying the loan risks of financial institutions such as banks.The emergence of the “Hua Ding Guarantee” case directly exposed many shortcomings and vacancies in the legal regulation of financing guarantee companies in China.The imperfect imperfection of the legal regulation system has further adversely affected the business development environment of the financing guarantee company and the banking financial institutions.This article will proceed from the violation of the financing guarantee company law,look at the essence through the phenomenon,analyze the problems and causes,and focus on how to improve the legal regulation measures.This article consists of four parts,the main contents are as follows:The first part mainly introduces the background,reasons and crisis performance of the financing guarantee company.According to the relevant laws and regulations,the balance of guarantee liability cannot exceed 10 times of the company's net assets,but many financing guarantee companies do not act in accordance with the law;and the financing guarantee company is a company that is subject to the actual payment system of 27 types of registered capital,but the registered capital The phenomenon of fleeing is not uncommon or even falsely funded;in addition,the company's executives use their powers to violate their loyal and diligent obligations,illegally investing the company's capital in violation of regulations,resulting in a capital chain break in the compensation process.The second part discusses the reasons for the legal regulation of financing guarantee companies by combining relevant theories of economic law.First,studying the legal regulation of financing guarantee companies can maintain the security and stability between financing guarantee companies,borrowers and investors.Second,strengthening the legal regulation of financing guarantee companies is also the need to protect the legitimate rights and interests of investors.Finally,the opportunities and challenges facing the financing guarantee market are increasing.The social and economic development requires a more complete market system and higher market efficiency.The legal regulation of financing guarantee companies will promote the improvement of the market system and help the market regulation system to be sound.The third part focuses on the reasons for the violations discussed in the first part.First,the guarantee debt of the financing guarantee company exceeds the guarantee capacity and the difference between the registered capital and the net capital is large,resulting in a mismatch between the guarantee ability and the guarantee debt.Secondly,in the process of operation and guarantee,the financing guarantee company lacks the registration of the guarantee amount and the information disclosure of the remaining guarantee amount.Finally,the governance structure within the guarantee company is disorderly,and the effectiveness of mutual restraint between the supervisors and the seniors cannot be exerted.The fourth part proposes improvement measures for the reasons of the third part.In order to solve the problem of guarantee ability,this paper proposes to register and inquire about each guarantee amount,so that investors can decide whether to invest according to the company's remaining guarantee amount,avoid the company's guarantee process,the opacity of the guarantee amount,and reduce the investor's Investment risk;in addition,it is necessary to establish a capital-maintained spot check system to avoid the simultaneous failure of the borrower to repay the debt and the company's loss of compensatory ability to protect the interests of investors.Next,it is necessary to expand the scope of content disclosed by the financing guarantee company,standardize the form and approach,improve the margin system,strengthen the cooperation of the bank,and establish a credit risk protection mechanism.In order to solve the problem of mismatch between guarantee ability and guarantee debt,improve the internal regulation of the company,improve the high structure of the supervisor,and play the role of mutual restraint;know that the company still guarantees beyond the guarantee ability,and use the power to withdraw the investment from illegal investment.In this case,it is necessary to increase the responsibility for the company's senior management,and together with the company,assume the joint responsibility of the guarantee.Government regulation sometimes cannot solve all problems,so it should also join the self-regulation of the financing guarantee industry association in the regulation system.