Study On The SME Credit Guarantee System In Japan

Small and Medium-Sized Enterprises(SMEs) are playing important and active roles in the national economy. They are superior to the large companies in such areas as resource allocation for the property-right advantage, decision-making and management for their high efficiencies and their innovation capabilities. Many governments have realize the importance to foster the SMEs. However, the problem of financing constraints for SME development has always been the "bottleneck." Experience from various countries shows that establishing and improving SME credit guarantee system is an efficient solution to this problem. SME credit guarantee system in Japan has formed a unique experience and typical features in their basic structure and operation mechanism after development in the past over 70 years. Its efficient operation is of great importance for the financing constraints of SMEs and the revitalization of Japan's economy.Faced with the current world economic recession and the severe slowdown in China's economic situation, by using the asymmetric information theory, risk transfer and risk diversification theory, new institutional economics theory, this article pointed out that the establishment of SME credit guarantee system for SMEs can effectively alleviate financing difficulty. By analyzing the experience of the establishment of SME credit guarantee system and development in Japan, the further analysis of the basic institutions and specific operation of credit guarantee system and the comment of the success and failure of the system has been conducted. On basis of the analysis, compare with the processor and current situation of counterparts in our country, the article probes the potential problem of the system and made a series of improvement measures.This paper is divided into six chapters:The first chapter is introduction , which include the research background and significance of this article. As the current global financial crisis spread, SMEs have become the most serious-affected group. Among the difficulties they face, the financing problem is particularly prominent. Experience shows that to establish and improve SME credit guarantee system is an efficient solution of the bottleneck of SME financing. Faced with the economic recession and the severe slowdown in China's economic situation. To analysis the guarantee system for SMEs and to set up for China's national conditions and the credit guarantee system for SMEs have a positive practical significance. The current research stage of home and abroad, the idea and method of the analysis are also included in this chapter.Relevant concepts and theories of the Chinese credit guarantee system for SMEs. This chapter includes two parts, the first introduces the concept and forms of credit guarantees. Credit guarantee, also known as credit guarantee, refers to the agreement agreed by reputable credit guarantee institutions and creditors, with the aim to provide security for the creditors. If the principal cannot fulfill obligations under the contract, the compensation should be offered by the credit guarantee institutions and bear the responsibility of the debtor, which is an crucial civil legal system to ensure implementation of economic activities. The part also includes the theory of credit guarantee with Symmetric theory, risk transfer, risk distribution in it and the Institution Change Theory of the New Institutional Economics as well.Establishment and development of history of the SME credit guarantee system in Japan. By 1950s and 1960s, Japan had established a fairly complete SME credit guarantee system for SMEs, which not only include the main body of market competition, but also a guarantee to ensure the efficient financial raise with the pace of rapid economic growth of SMEs in the period. This contributes a lot to the development of SMEs and the development of the domestic economy. In the new century, Japan's credit guarantee system has enjoyed further development in the new economic situation.Chapter IV provides details on SME Credit Guarantee System in Japan's basic structure and its specific operation. Two parts are involved in the chapter. First, we introduced the basic structure of credit guarantee system for SMEs in Japan, including the Japanese SME credit guarantee system for institutional arrangements, support systems, financing resources and risk sharing. Second, the details of the operation process, the requirements, limits of the object and rates will be given.The evaluation of operation process of this system will be conducted in the Chapter V, in which analysis of both positive and negative sides of the system will be given, with the aim to provide useful experience we can learn from to improve and develop our own system for SMEs.Chapter VI delivers a specific analysis of SME Credit Guarantee System of China. This chapter constitutes four parts. The first part describes the establishment of SME credit guarantee system in China and development of history, which consists of exploration, pilot specifications, initiatives, and implementation. The second part introduces the current China's SME credit guarantee system. In recent years, China's security industry is showing continued growth, service SMEs positioning more clearly, the security agencies show strength in their growth process and the capability of risk management improves a lot. The industry is showing a healthy and rapid development momentum. The third part analyzes some operation problems in China's SME credit guarantee system. First, there exists a lag between the security industry laws and regulations, which mainly seen as a lack of institutional guarantees; Second, administrative intervention are still matters to some extent; Third, the security agencies are small-sized, which have limited financial resources, cannot fully functioning; Fourth, lack of funds compensation mechanisms; Fifth, it lacks of effective risk management mechanism. On the basis of the analysis of China's SME credit guarantee system, we presented so proper suggestion to improve the SME credit guarantee system for policy recommendations. First, develop and improve the regulations and policies, improve the system of body System; Second, make scientific industry planning and regulate the development of the industry; Third, increase funding and support and improve the policy; Fourth, improve the financial compensation mechanisms; Fifth, strengthen risk management.