Analysis Of Guaranty Industry In Henan Province On The Problems Of Risk Control

In recent years, the emerging investment & guaranty industry in Henan province is developing rapidly, and all kinds of investment & guaranty agencies have mushroomed all around. Depended on the thriving force of the huge financing needs of small and medium-sized enterprises, and all kinds of levels positive policy supports from the government and urgent craves of many folks for capital profits, the rising non-bank financial industry is booming.In long term, many small and medium-sized enterprises are hard to adapt to standardized ways of the capital supply by commercial banks in the modern financial system, because they own some shortcomings themselves. The financing difficulties come to be a huge obstacle which influences on the survival and the development of small and medium-sized enterprises. Since 2008, the financial crisis further highlights small and medium-sized enterprises'financing difficulties stubborn illness.Total enterprises accounted for more than 90% of small and medium-sized enterprise is the main force of our national economy, which create more than half of the GDP for community and provide millions of jobs for people a year. Therefore, small and medium-sized enterprises in any areas are important strength to promote local economic development, government departments at all levels have spare no effort to support them.Recently, by the macroeconomic policy, the stock market, the property market, the coal industry, and so on inland are limited, domestic investment channels has become narrowed. A lot of private capital flows around, and urgently seeks better investment channels to maintaining and appreciating its own value.In order to support the development and the growth of small and medium-sized enterprises, Government departments at all levels have issued many policies which encourage private capital to join the investment & guaranty industry, because investment & guaranty agencies actively support small and medium-sized enterprises' financing. Meanwhile, more and more private capital are attracted to join investment & guaranty industry by low barriers to entry, relatively loose regulation and higher investment income level. In Henan province, the investment & guaranty industry also quickly obtained rapid expansion of development.As an emerging investment & financing platform, the investment & guaranty industry effectively relieves the financing difficulties of small and medium-sized enterprises. It plays a positive role to promote the development of the private economy in Henan province. However, behind the prosperity of the investment & guaranty industry, the risk is being accumulated, and the crisis showed is becoming bigger than before. Some investment & guaranty enterprises processed false capital contribution, and many guaranty businesses were running in non-standard form and provisions of guaranty risk were shortage, etc... Such problems emerge in endlessly, and most managers in small investment & guaranty companies lack risk control consciousness, and managerial risk control means are not safe. These problems hidden in the whole investment & guaranty industry will bring great troubles for its steady development.According to the developing law of things, it is estimated that the investment & guaranty industry will be at risk in frequency in another two or three years. No matter as operators in the industry, or the administration association of government, or other enterprises, institutions and individuals, we all should take precautions beforehand with risk awareness and methods, and take some various means to control the risks of the investment & guaranty industry in advance. Then we could avoid or reduce more damages while risk events are happening.This paper reveals current situation and problems of the investment & guaranty industry in Henan province at present, and includes analyzes of potential risk problems. It also refers to some representative investment & guaranty company business norms, and use management experience and research works on investment & guaranty risk control for reference domestic and overseas. It spreads the analysis and the content of risk control system.Finally, standing in government financial support and relevant supervision and management departments and enterprise's management positions, it offers opinions and measures of risk control by the basic method and principle of risk control for the investment & guaranty industry in Henan province.