Analysis On The Cooperation Between Commercial Banks And Credit Guarantee Companies For SMEs

In order to promote the development of Small and Medium-sized Enterprises (SMEs), China has been making efforts to build Credit Guarantee System for SMEs. Through the intervention of credit guarantee companies, the credit standing of SMEs is promoted, so that they can get financial services easier from commercial banks. As a result, the cooperation between commercial banks and credit guarantee companies for SMEs is essential and promising in this kind of credit market arrangement. The financial difficulty of SMEs just provides great opportunity to them from strategic cooperation to self development. However, preventing and controlling the cooperation risk are critical to this sustainable cooperation, as well as to the accomplishment of Credit Guarantee System for SMEs.The thesis makes a deep analysis of cooperation necessity between commercial banks and credit guarantee companies for SMEs, which is originated from the financial difficulty of SMEs. The analysis shows that the cooperation is an effective way to solve the financial difficulty of SMEs. It is not only good to the development of credit guarantee companies, but also to the competition advantage of commercial banks. After all, it is good to credit market efficiency improvement. Several cooperation models are concluded and been analyzed separately. The cooperation risk and its reason have been studied from the aspects of national macroeconomic conditions, commercial banks, SMEs and credit guarantee companies. Then the Game theory is applied to describe the cooperation decision process, as well as the four conditions of risk transformation. The non-linear programming is applied to make a clear definition and description of key cooperation risk factors and how to achieve the maximum guarantee amount on the basis of fine and sustainable cooperation between commercial banks and credit guarantee companies for SMEs. The research also refers to the interaction of key risk factors. From the above analysis, the thesis brings out preventing and controlling method for the cooperation risk. In order to get a more practical research effect, the thesis adopts the case study of cooperation risk of commercial banks and credit guarantee companies for SMEs from Wenzhou city, which is sourced from the outside school investigation.The conclusion shows that the cooperation risk between commercial banks and credit guarantee companies for SMEs, especially for the preventing and controlling, should refers to the collaboration of all participators, the government policy and law system, SMEs, commercial banks and credit guarantee companies. Government support is crucial to the sustainable cooperation. The preventing and controlling of cooperation risk should be in a systematic way. Meanwhile, the credit guarantee companies need to standardize the internal management and make more cooperation innovations with commercial banks. Finally, the establishment of Credit Guarantee System for SMEs is fundamentally important.