Research On The Legal Institution Of Credit Guarantee Organizations’ Market Access

Subjects in the market economy, the number of SMEs occupy large segments of the market. And it’s the most active subject in the market economy.The SMEs which have the adaptability show its unique advantage in the financial crisis. The SMEs made a great contribution to solving the employment and promoting the development of social economy. But with rising of raw materials and the price of human capital, the SMES encountered financing bottleneck. Because of its small scale and lacking collateral and credit, it caused the asymmetry of information between SMEs and banks. The SMES is very difficult to get financing from a bank if only rely on their own strength. So the financing difficulties of SMEs have contributed to the emergence of Credit Guarantee Organizations in time. The credit guarantee organization of the SMEs is a credit assets agency which obtains the qualification of business license and the registration of establishment according to law, its function is to provide credit guarantee services for SMEs financing behavior or performance. Since1993, China established the first credit guarantee organization; the CGOs received development of20years in China. The development of CGOs plays an important role for SMEs financing, but also promotes the development of the market economy. However, because the legal regulation of credit guarantee mechanism is not perfect, especially the lack of credit guarantee mechanism of market access system, the credit guarantee agencies in the course of its development caused problems,such as the poor risk control ability and illegal business. Therefore, needs to establish a perfect legal system of CGOs’ market access to solve the problem of uneven quality of CGOs from the source, and ensure the security of CGOs to enter the market.Because the development time of the credit guarantee industry in China is not long, the legal system of CGOs’ market access exists difficulties in these aspects:legal norms, the establishment of guarantee mechanism and guarantee business. First, the legal problems are the absence of law and confusion of regulations, leading to the CGOs’ market access is no statutes to apply. Second, the CGOs’supervision department and legal responsibility is not clear, and it’s not conducive to the security supervision. Third, the establishment of CGOs exist difficulties in following aspects:The registered capital requirement is unreasonable, and the contribution of no time limit. Lacking of access standards for employees, it increases the CGOs’ operating risks. Due to the CGO is lack of the main remedy approach and legal responsibility is not clear, its legal rights can not be protected. Fourth, the CGOs’ dilemma of business is single business and limited cooperation between banks and guarantees. Therefore, in order to improve the legal system of the CGOs’ market access, and promote to solve the financing problem of SMEs, make guarantee agencies development healthy and promote to establish the supervision system of credit guarantee, need carry on from the following aspects:First, enhance the legal position of the guarantee mechanism of market access, connect all kinds of rules, so that the CGOs’ access have laws to rely on. Second, establish a unified supervision department, and clear legal responsibility of supervision department. Third, perfect mechanism of guarantee is provided with the conditions of establishment and the relief and legal liability, including, perfecting the institution of registered capital, formulating personnel’standards, improving the CGOs’ remedy approach and legal liability. Fourth, solve the CGOs’ dilemma of business from perfecting guarantee business and promote the cooperation between banks and enterprises.