Research On Sustained Development Of China's Policy Financing Guarantee Organizations

Such as agriculture,small and medium-sized enterprises and other vulnerable groups play an important role in the development of China's national economy.However,due to their weak anti-risk ability and lack of information transparency,they have great difficulties in applying for loans from commercial Banks.In order to help smes develop healthily,China began to explore the establishment of policy-based financing guarantee system in the 1990 s.After years of development,policy-based financing guarantee institutions have become the backbone of China's financing guarantee market.In spite of this,there are still many problems in China's policy-based financing guarantee system that need to be solved.The introduction of this paper first analyzes the allocation of social resources should take into account economic effectiveness and social and rational.However,general commercial financial institutions only pursue economic benefits and ignore those industries or sectors that cannot directly generate profits but are crucial to social stability and development,and then leads to the necessity of the existence of policybased financing guarantee institutions and their advantages in providing loans for small and medium-sized enterprises.At the same time,it also points out some problems existing in the policy-based financing guarantee system.Then this paper sorts out the relevant theories at domestic and abroad and compares them.The last part of the introduction points out the advantages and disadvantages of this paper.The first chapter is the theoretical analysis of policy-based financing guarantee.This paper first introduces the theoretical basis of policy-based finance and the significance and value of studying policy-based finance,emphasizes that policy-based finance is an important tool for the country to balance the economic effectiveness and social rationality,and then analyzes the necessity and superiority of policy-based financing guarantee.The second chapter pointed out 3 problems in policy-based financing guarantee system: Due to the imbalance of income and expenditure,the ability of sustainable development is insufficient.Compensatory expenditure climbs year after year.business management is not standard.And analyze the problems in risk identification and transfer mechanisms,capital compensation mechanism,risk diversification mechanism,corporate governance structure respectivly to identify the root cause of the problem at the source.Because in our country,policy financing guarantee institutions facing the problem of insufficient ability of sustainable development due to the imblance of income and expenditure generally,in view of the seriousness and universality of the problem,in the empirical chapter of this paper,the income and expenditure models are separately analyzed and combined with the specific financial statements of the policy financing institutions to verify the model.in order to find out how to achieve meager profit and sustainable development on the conditions that do not change the functional positioning of its policy financial institutions.In the last chapter of this paper,targeted policy suggestions are put forward for the main problems faced by China's policy-based financing guarantee institutions and the causes of the problems described above.Policy-based financing guarantee institutions are financial institutions that do not aim at making profits.However,with the slowdown of China's economic growth,the operating environment of smes has become less than before,and default events occur frequently.In addition,in 2019,the guidance of the general office of the state council on effectively giving play to the role of government financing guarantee funds to effectively support the development of small and micro enterprises and "agriculture,rural areas and farmers" stressed the need to further reduce the financing costs of small and micro enterprises and reduce the guarantee rate of financing guarantee institutions.In this situation,before and after the attack,"break-even" has become not so easy.Therefore,I hope to find out the factors restricting the healthy development of policybased financing guarantee institutions through in-depth research on policy-based financing guarantee institutions,so as to make contributions to the release of shackles of policy-based financing guarantee institutions and the release of development potential of policy-based financing guarantee institutions.